Question

Pierce Companys break -even point is 30,000 units. Its product sells for $30 and has a $25 variable cost per unit. What is the company total fixed cost amount?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

Contribution margin per unit = selling price - variable cost = $30 -$25 = $5 per unit

Fixed Costs = Break-even units * Contribution margin per unit = 30000* $5 = $150,000

Add a comment
Know the answer?
Add Answer to:
Pierce Company's break -even point is 30,000 units. Its product sells for $30 and has a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT