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nw score: 14.29%, 1 of 7 pts Next Question Problem S7.16 - Bookmatch Question Help Smithson Cutting is opening a new line of
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Answer #1

Fixed cost = $500

Variable cost per unit = $0.50

Selling price per unit = $0.75

Contribution margin per unit = Selling price per unit- Variable cost per unit

= 0.75-0.50

= $0.25

Bread even point in units = fixed cost/ Contribution margin per unit

= 500/0.25

= 2,000 units

For Smithson cutting, the break even point in units = 2,000 units

Kindly comment if you need further assistance.

Thanks‼!

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