Question

Jane corporation produces model toy cars each sells for $29 99 sense its variable cost per unit is $14 25 sense what is the break even point for Jane corporation assuming it has a fixed cost of $314800​

Answer 1

Answer:

Break-even point in units= 20,000

Step-by-step explanation:

Giving the following information:

Selling price per unit= $29.99

Unitary variable cost= $14.25

Fixed costs= $314,800

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

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

Break-even point in units= 314,800 / (29.99 - 14.25)

Break-even point in units= 20,000