Question

TB MC Qu. 6-101 Data concerning Bedwell Enterprises ... Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 160.00 Variable expense per unit $ 91.50 Fixed expense per month $ 429,490 The unit sales to attain the company's monthly target profit of $19,000 is closest to: (Do not round intermediate calculations.) Brewer 8e Rechecks 2018-06-19

Answer 1

Answer:

Break-even point in units= 6,547 units

Explanation:

Giving the following information:

Selling price per unit $160

Variable expense per unit $91.50

Fixed expense per month $429,490

Desired profit= $19,000

To calculate the number of units to be sold, we need to use the break-even point formula:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (429,490 + 19,000) / (160 - 91.5)

Break-even point in units= 6,547 units