Star Jewelry sells 500 units resulting in $75,000 of sales revenue, $28,000 of variable costs, and $18,000 of fixed costs. Breakeven point in units is approximately:
Breakeven in units will be 191.49 units or 192 units approximately
A |
Sales price ($75000/500) |
$ 150.00 |
B |
Variable cost ($28000/500) |
$ 56.00 |
C=A-B |
Contribution margin |
$ 94.00 |
D |
Fixed cost |
$ 18,000.00 |
E= D/C |
Breakeven point |
191.49 |
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