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Alvarez Company's break-even point in units is 1,850. The sales price per unit is $8 and...

Alvarez Company's break-even point in units is 1,850. The sales price per unit is $8 and variable cost per unit is $6. If the company sells 4,200 units, what will net income be?

$4,700

$3,000.

$8,400

$48,400

$25,900

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Answer #1

At Breakeven point

(Selling price - Variable costs)*break even units = Fixed cost

(8 - 6) * 1850 = Fixed cost

Fixed cost = 3,700

Net income = (8-6)*4,200 - 3,700

= $4,700

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