If TechCor has fixed costs of $60,000, variable costs of $1.20/unit, sales price/unit of $7, and depreciation expense of $25,000, what is their cash breakeven in units?
A) 6,034 units
B) 11,458 units
C) 12,375 units
D) 45,833 units

Question

Quizplus · Accepted Answer

Fixed costs = $60,000Variable costs = $1.20/unitSales price/unit = $7Depreciation expense = $25,000Cash breakeven in units = (Fixed costs + Depreciation expense) / (Sales price/unit - Variable costs)= ($60,000 + $25,000) / ($7 - $1.20)= $85,000 / $5.80= 14,655 units

If TechCor Has Fixed Costs of $60,000, Variable Costs of $1.20/unit