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Leokris [45]
3 years ago
14

The following information pertains to the Flying Fig​ Corporation:Total Units for information given7 comma 000Fixed Cost per Uni

t$ 100Selling Price per Unit$ 500Variable Costs per Unit$ 175Target Operating Income$ 250 comma 000What is the breakeven in​ units? (Round your final calculation to the nearest​ unit.)
Business
1 answer:
Marina CMI [18]3 years ago
8 0

Answer:

2,154 units

Explanation:

Total units 7,000

Fixed cost per unit $100

variable costs per unit $175

selling price per unit $500

Break-even point under CVP analysis  = fixed cost/contribution margin per unit.

Fixed cost for 7000 x $100 = $700,000

contribution margin per unit = selling price -variable cost

=$500 -$175

=$325

Break-even point  in units = $700,000/$325

= 2, 153.84

=2,154 units

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