Question

6te At a break-even point of 400 units, variable costs were $400 and fixed costs were...

6te

At a break-even point of 400 units, variable costs were $400 and fixed costs were $200. What will the 401st unit sold contribute to operating profits before income taxes?

-$0.50

-$1.00

-$1.50

-$2.00

0 0
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Answer #1

BEP(units) = fixed cost/contribution per unit

400    = 200/x\

x    = 200/400

= $.50 per unit

hence 401st unit sold contribution to operating profits will be $.50 answer

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