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aleksandr82 [10.1K]
3 years ago
9

Your break-even point is 3,000 units. You make $5 on each unit; that is, your price minus variable cost is $5. What are your fix

ed costs? Use the formula: Break-even Point = Fixed Costs / (Price - Variable Cost)
Business
1 answer:
shepuryov [24]3 years ago
7 0

The fixed cost is $15000

<u>Explanation:</u>

Given:

Break even point = 3000 units

Each unit = $5 → (Price - variable cost = $5)

Fixed cost, x = ?

We know,

Break even point = fixed cost / (Price - Variable cost)

On substituting the values:

3000 = \frac{x}{5} \\\\x = 15000

Thus, the fixed cost is $15000

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