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If a product sold for $104, had variable cost per unit of $44, and total fixed...

If a product sold for $104, had variable cost per unit of $44, and total fixed costs of $477, the breakeven would be $__.__. Calculate your answer to 2 decimal places.

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Answer #1

Break even point in units= Fixed cost / Contribution

Fixed cost = $477
Contribution = sales - variable cost
= $104 - $44
= $60

Break even point in units = $477/$60 = 7.95 units

Break even point in dollar = Break even point in units * selling price
= 7.95 * $104
= $826.80

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