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If fixed costs are $1,356,000, the unit selling price is $219, and the unit variable costs are $103, the break-even sales (un
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Answer #1
Break-even sales represents number of units sold in which case there would be no profit nor loss for company.
Formula to calculate break-even sales (units)
Break-even sales (Units) Fixed costs/Contribution margin per unit
Formula to calculate contribution margin per unit
Contribution margin per unit Selling price per unit - Variable cost per unit
Calculation of break-even sales (units)
Break-even sales (1356000+45200)/$116
Break-even sales        12,079 units
Thus, break-even sales (units) is 12,079 units
Contribution margin per unit 219-103
Contribution margin per unit $116
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