manufacturing produce a single product that sell for the AED 200. variable cost per unit equal AED 50. the company expects total fixed cost to AED 120000 for the next month at the projected sales level of 2000 units . in an attempt to improve performance is considering a number of alternative action.
what is the current breakeven point in term of number of units?
24000 units
800 unis
None of these answer are correct
900 units
Break even units
= Fixed cost/Contribution margin per unit
= 120,000/(200-50)
= 120,000/150
= 800 units
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