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dangina [55]
3 years ago
14

Sheryls's business sells a single product. The following information was gathered from Sheryls's records: Price $97.00 per unit

Variable costs are 67% of sales price The company's fixed costs are $400,000 annually Current sales total is 16,000 units Target profit before tax $33,000 Budgeted sales total is 15,000 units How many units does Sheryls's business need to sell to break even
Business
1 answer:
VLD [36.1K]3 years ago
4 0

Answer:

12,497 units

Explanation:

Break even unit = Fixed Cost ÷ Contribution per unit

                           = $400,000 ÷ $97.00 x 33%

                           = 12,497 units

Sheryls's business need to sell  12,497 units to break even

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