Littleton, Inc., has fixed costs of $75,000 per month, variable costs of $5 per unit, and...

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Littleton, Inc., has fixed costs of $75,000 per month, variable costs of $5 per unit, and...

Littleton, Inc., has fixed costs of $75,000 per month, variable costs of $5 per unit, and a sales price per unit of $30. What is the break-even quantity per month

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Answer 1

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Answer #1

Contribution margin=Sales-Variable costs

=(30-5)=$25 per unit

Hence breakeven quantity=Fixed cost/Contribution margin

=(75000/25)

=3000 units per month.

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Answer 2

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