A company's fixed costs are $57,000, variable costs per unit are $3 and sales price per...

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A companys fixed costs are $57,000, variable costs per unit are $3 and sales price per unit are $17 What is the firms break-

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Answer 1

Answer #1

Hello Sir/ Mam

Given that:

Fixed Costs = $57,000

Variable Cost per unit = $3

Sales Price per unit = $17

Hence, contribution per unit = $17 - $3 = $14

Hence,

$Break \ even \ point = \frac{Fixed \ Costs}{Contribution \ per \ unit}=\frac{\$57,000}{\$14}= 4,071.43 \ units \approx 4,071 \ units$

I hope this solves your doubt.

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Answer 2

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A company's fixed costs are $57,000, variable costs per unit are $3 and sales price per...

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Add Answer to: A company's fixed costs are $57,000, variable costs per unit are $3 and sales price per...

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