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Debora [2.8K]
3 years ago
14

In 2019, Teller Company sold 3,000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $270,000. T

he same selling price, variable expenses, and fixed expenses are expected for 2020. What is Teller’s break-even point in units for 2020? g
Business
1 answer:
Yuliya22 [10]3 years ago
8 0

Answer:

Break-even point in units= 1,500

Explanation:

Giving the following information:

Selling price= $600

Unitary variable cost= $420

Fixed cost= $270,000

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

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 270,000 / (600 - 420)

Break-even point in units= 1,500

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