Question

Hurly Co. has fixed costs totaling $165,000. Its unit contribution margin is $1.50, and the selling price is $5.50 per unit. Compute the break-even point in units. Break-even point in units units

Answer 1

Answer:

Break-even point= 110,000 units

Explanation:

Giving the following information:

Hurly Co. has fixed costs totaling $165,000. Its unit contribution margin is $1.50.

The break-even point in units is the number of units required to cover for the fixed and variable costs.

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

Break-even point= fixed costs/ contribution margin

Break-even point= 165,000/1.5= 110,000 units

Answer 2

Answer: 110,000 units

Explanation:

Given the following ;

Fixed cost = $165,000

Unit contribution margin = $1.50

Selling price = $5.50

Break even point(unit) = (Fixed cost ÷ contribution margin per unit)

Break even point = ($165,000 ÷ $1.50) = 110,000

The break even point in unit refers to the number of units which will be sold such that net profit of Hurley Co. Will be Zero. Meaning no profit or loss when Number of units sold equals 110,000.