Planet company sells a product for $16 per unit, variable cost is $12 per unit, and the total fixed cost is $6,000. What is the

Question

marin [14]

3 years ago

11

Planet company sells a product for $16 per unit, variable cost is $12 per unit, and the total fixed cost is $6,000. What is the

break-even point in units?

Business

1 answer:

finlep [7] · Answer 1 · 2022-04-29T08:47:41+03:00

finlep [7]3 years ago

8 0

The following formula is used to calculate break even point:

Break even point = Fixed cost/(Price per unit - Variable cost per unit)

Substituting for the values given;

Break even point = 6,000/(16-12) = 1,500 units