Lights manufacturing produces a single product that sells for $130. variable costs per unit equal $55....
Lights manufacturing produces a single product that sells for $130. variable costs per unit equal $55. the company expects total fixed costs to be $100,000 for the next month at the projected sales level of 1,300 units. What is the current breakeven point in terms of number of units?
a. 770 units
b 1,334 units
c. 541 units
d. 1,819 units
Homework Answers
| b 1,334 units | ||
| Units | per unit | |
| Sales | $130.00 | |
| Variable costs | $55.00 | |
| Contribution | $75.00 | |
| Fixed Cost | $100,000 | |
| Break Even Point = | Fixed cost/Contribution per unit | |
| = | $100,000/$75 | |
| = | 1,334 | |
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