Question

Karlik Enterprises distributes a single product whose selling price is $27 per unit and whose variable expense is $22 per uni

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Answer #1

Unit sales to break even= fixed expense/ contribution per unit

Contribution per unit = sales price p.u - variable cost p.u

= 27-22

=$5

Break even point (units)= $24,000/$5

= 4800 units

If company sells 4800 units it will reach break even point i.e. no profit or no loss to the business.

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