If Piper Manufacturing manufactures one unique set of stack pipes, and the sell price is $121,000,...
If Piper Manufacturing manufactures one unique set of stack pipes, and the sell price is $121,000, the variable costs per unit are $62,000, and the fixed costs are $500,000, what is the break-even point in units?
Group of answer choices
Approximately 8 units
Approximately 2 units
Approximately 16 units
None of the above
Homework Answers
Here you go with the solution:
break-even point in units - Approximately 8 Units
| Numerator | Denominator | ||
| Break-even point (in units) | Fixed Cost | Contribution p.u. | |
| $500,000 | =($121000-$62000) | ||
| Break-even point (in units) | =500000/(121000-62000) | ||
| 8.47 | Units (Approximately) | ||
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