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RSB [31]
2 years ago
11

Shock Electronics sells portable heaters for $35 per unit, and the variable cost to produce them is $22. Mr. Amps estimates that

the fixed costs are $97,500.
a. Compute the break-even point in units.
Business
1 answer:
Dafna11 [192]2 years ago
5 0

Break-even point in units is 7,500 unit

<u>Given that;</u>

Cost of each heater = $35

Variable cost of each heater = $22

Fixed cost = $97,500

<u>Find:</u>

Break-even point in units

<u>Computation:</u>

Contribution = Sales - VC

Contribution = $35 - $22

Contribution = $13

Break-even point in units = Fixed cost / Contribution

Break-even point in units = 97,500 / 7

Break-even point in units = 7,500 unit

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