Calculate the break even point in dollars and units for a product that has: Expected Unit...
Calculate the break even point in dollars and units for a product that has:
Expected Unit Sales at launch:10,000 units
Selling Price/Unit: $9.99 Fixed Costs: $50,000
Variable Cost/Unit: $2.50
Homework Answers
Contribution margin=Sales-Variable cost
=(9.99-2.5)=$7.49 per unit
Breakeven=Fixed expenses/Contribution margin
=50,000/7.49
=6675.57 units(Approx)
=(6675.57*9.99)
=$66688.92(Approx).
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