Question

Rebotar Inc, makes basketballs. Their fixed costs are $3450 Variable costs are $12 per basketball, If the basketball is priced at $25 and 300 basketballs are sold, did Rebotar break even? How do you know Show all work.​

Answer 1

Answer:

Break-even points = 265.38

Explanation:

Given:

Fixed cost = $3,450

Variable costs = $12

Selling price = $25

Number of balls sold = 300

Find:

Break even costs

Computation:

Contribution per unit = Sales - Variable costs

Contribution per unit = $25- $12

Contribution per unit = $13

Break-even points = Fixed cost / Contribution per unit

Break-even points = $3,450 /$13

Break-even points = 265.38