If fixed costs are $234,000, the unit selling price is $123, and the unit variable costs are $72, the break-even sales (units) is Oa. 4,588 units Ob. 1,902 units Oc. 1,200 units Od. 3,250 units
If fixed costs are $234,000, the unit selling price is $123, and the unit variable costs are $72, the break-even sales (units) is Oa. 4,588 units Ob. 1,902 units Oc. 1,200 units Od. 3,250 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Explanation -
Break Even Sales (Units) -
Break Even Point is the point where company recovered its fixed cost. From the point of break even company will earn profit. It helps company to understand how many units to be sold to earn required target profit.
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