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A company makes a single product with a sales price of 10 and a variable cost of 6 per unit, fixed costs are 60,000. Calculate: (1) Number of units to break even (ii) Sales at break even.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

-A company makes a single product with a sales price of 10 and a variable cost of 6 per unit, fixed
costs are 60,000. Calculate:
(1) Number of units to break even
(ii) Sales at break even.

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