Homework Answers
Solution:
Sales price per unit = $100,000 / 1000 = $100
Variable costs per unit = $60,000 / 1000 = $60
Break-Even point (in units): Fixed Costs / (Sales price per unit - Variable costs per unit)
Break-Even point (units) = 20,000 / (100-60) = 500 units
Thus, break-even point in unit sales equals 500
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