TenCo's junior tennis rackets has fixed costs of $740,000.00. The selling price per racket is $77.59. The variable cost per rack
et is $39.72. What is the break-even point in units?
1 answer:
B = F / (S-C)
B - breaking point in units
F - fixed costs, S - selling price, C - cost per racket.
S-C is the profit on a single unit
B = 740000 / (77.59 - 39.72) = 19540.53
The breaking point is approached after selling 19541 units.
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