Question

The Elmina Wilson Company produces spaghetti sauce that is used in restaurants. The fixed costs total $1,329,050. The selling price per 64 oz. Can of sauce is $12.40. The variable cost per can is $4.80. What is the break-even point in number of cans?

Answer 1

Answer:

174879 units

Step-by-step explanation:

Given that The Elmina Wilson Company produces spaghetti sauce.

Fixed costs =1,329,050 $

Selling price per  64 oz=$12.40$

Variable cost per can   = $4.80$

Contribution = S-V=Selling price - var cost = 7.60 $

Break even poin in no of units = Fixed cost/Contribution per unit

=$\frac{1,39,050}{7.60} \\=174878.94\\=174879$