Wallace Incorporated sells its products for $550 per unit. Variable costs are currently 20% of sales revenue. Fixed expe...
Wallace Incorporated sells its products for $550 per unit.
Variable costs are currently 20% of sales revenue. Fixed expenses
are $198,000 per year.
What is the breakeven point in units at the current selling
price?
|
440 units |
||
|
1800 units |
||
|
450 units |
||
|
300 units |
Homework Answers
Variable expenses=550*20%=110
Contribution margin=Sales-Variable cost
=550-110=$440
Hence breakeven=Fixed cost/Contribution margin
=198,000/440
=450 units.
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