Break-Even Point Lablanc Inc. sells a product for $96 per unit. The variable cost is $63 per unit, while fixed costs are $169,884. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $102 per unit. a. Break-even point in sales units b. Break-even point if the selling price were increased to $102 per unit units units
Break-Even Point Lablanc Inc. sells a product for $96 per unit. The variable cost is $63 per unit, while fixed costs are $169,884. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $102 per unit. a. Break-even point in sales units b. Break-even point if the selling price were increased to $102 per unit units units
Chapter1: Financial Statements And Business Decisions
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Break-Even Point
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Lablanc Inc. sells a product for $96 per unit. The variable cost is $63 per unit, while fixed costs are $169,884.
Determine (a) the break-even point in sales
(b) the break-even point if the selling price were increased to $102 per unit.
a. Break-even point in sales units
b. Break-even point if the selling price were increased to $102 per unit
units
*
units
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Step 1: Explanation of Breakeven Point
The break-even point is the level of sales at which a company covers all its costs, resulting in neither profit nor loss.
It's the point where total revenue equals total expenses.
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