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Tim Taylor has written a self improvement book that has the following cost characteristics: Selling Price...

Tim Taylor has written a self improvement book that has the following cost characteristics: Selling Price $16.00 per book Variable cost per unit: Production $4.00 Selling & administrative 2.00 Fixed costs: Production $97,800 per year Selling & administrative 18,900 per year How many units must be sold to break-even? Round to two decimal places. Your Answer:

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Answer #1

Ans 11670.00 units

BREAK EVEN POINT = FIXED COST / CONTRIBUTION PER UNIT
FIXED COST / (SALES PRICE - VARIABLE COST)
(97800 + 18900) / (16 - 4 - 2)
11670.00 UNITS
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