Davison Toaster Corp. sells its products for $250 per unit. It has the following costs:

Business

1 answer:

dolphi86 [110]3 years ago

7 0

Answer:

Break-even point in units= 1,860

Explanation:

Giving the following information:

Selling price= $250 per uni

Fixed costs= 109,900 + 290,000= $399,900

Unitary variable cost= 29 + 6= $35

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 399,900 / (250 - 35)

Break-even point in units= 1,860

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