Question

If unit sales prices are $22 and variable costs are $12 per unit, how many units...

If unit sales prices are $22 and variable costs are $12 per unit, how many units would have to be sold to break-even if fixed costs equal $17,000?

Multiple Choice

  • 1,700 units

  • 20,400 units

  • 170,000 units

  • 37,400 units

0 0
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Answer #1

Breakeven units = Fixed cost/Contribution margin per unit

= 17,000/(22-12)

= 17,000/10

= 1700 units

Option A is the answer

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