Question

A company's fixed operating costs are $550,000, its variable costs are $2.40 per unit, and the product's sales price is $4.35. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs

Answer 1

Answer:

282,051

Explanation:

Breakeven point is the number of units produced and sold at which net income is zero

Break even = F/ P- V

F = fixed cost

P = price

V = variable cost

$550,000 / $4.35 - $2.40

= 282,051

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