Question

Fanning Corporation sells products for $41 each that have variable costs of $11 per unit. Fannings annual fixed cost is $711

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Answer #1

Solution

Breakeven point in units                    23,700
Breakeven in sales dollars $             971,700

Working

A Sale Price per unit $                  41.00
B Variable Cost per Unit $                  11.00
C=A x B Unit Contribution $                  30.00
D Total Fixed cost $       711,000.00
E=D/C Breakeven point in units                    23,700
F= E x A Breakeven in sales dollars $             971,700
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