A company's fixed operating costs are $550,000, its variable costs are $2.60 per unit, and the product's sales price is $4.25. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number.
Break even point= Fixed costs / (Price -Variable costs)
=550000/(4.25-2.6)
=550000/1.65
=333333.3333 or 333333 (Rounded to the nearest whole number)
So, the sales volume should be 333333 units
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