A company's product sells at $12 per unit and has a $5 per unit variable cost....

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A companys product sells at $12 per unit and has a $5 per unit variable cost. The companys total fixed costs are $98,000. T

business accounting

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Answer 1

Answer #1

Contribution margin per unit

Contribution margin per unit = Selling price per unit – Variable cost per unit

= $12.00 per unit - $5.00 per unit

= $7.00 per unit

Break-even point in unit

Break-even point in unit = Total fixed costs / Contribution margin per unit

= $98,000 / $7.00 per unit

= 14,000 Units

“Hence, the Break-even point in units will be 14,000 units”

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Answer 2

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A company's product sells at $12 per unit and has a $5 per unit variable cost....

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A company's product sells at $12 per unit and has a $5 per unit variable cost....

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Nicolas Enterprises sells a product for $59 per unit. The variable cost is $30 per unit,...

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Hilton Enterprises sells a product for $42 per unit. The variable cost is $29 per unit,...

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Rooney Company produces a product that sells for $40 per unit and has a variable cost...

A company's product sells at $12 per unit and has a $5 per unit variable cost....

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Add Answer to: A company's product sells at $12 per unit and has a $5 per unit variable cost....

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A company's product sells at $12 per unit and has a $5 per unit variable cost....