Your line of mechanical pencils has monthly fixed costs of $28,000. Each pencil has a variable...
Your line of mechanical pencils has monthly fixed costs of $28,000.
Each pencil has a variable cost of $1.85...
What is the break even point of these pencils sell of $2.70 each?
Homework Answers
Fixed Cost= $28000
Variable cost = $1.85 per unit
Price= $2.70 per unit
Let assume that BEP is x units.
In breakeven point- total cost=total revenue
FC+VC*x= Price*x
28000+1.85*x= 2.70*x
2.70x-1.85x=28000
0.85x=28000
X= 32941.18 =32942units
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