The sneaker company that you work for had a great marketing campaign and has increased sales for the original running shoe that
1 answer:
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Answer:
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units
Explanation:
Break even point in units in mathematical terms =
= =
= 1599 units
b) Using contribution margin
Contribution = Selling Price - Variable Cost = $650 - $450 = $200
Contribution margin = ( $200/ $650 ) X 100 = 30.77%
BEP = $319,700 / 30.77% = $1,039,000.025
Number of units = $1,038,999.025/$650 = 1598 units
a) Using mathematical equation 1599 units
b) Using contribution margin 1598 units