If fixed costs are $287,000, the unit selling price is $33, and the unit variable costs are $15, the break-even sales (units) if fixed costs are reduced by $47,500 is Oa. 10,644 units Ob. 13,306 units Oc. 19,958 units Od. 15,967 units

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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If fixed costs are $287,000, the unit selling price is $33, and the unit variable costs are $15, the break-even sales (units) if fixed costs are reduced by
$47,500 is
Oa. 10,644 units
Ob. 13,306 units
Oc. 19,958 units
Od. 15,967 units
Transcribed Image Text:If fixed costs are $287,000, the unit selling price is $33, and the unit variable costs are $15, the break-even sales (units) if fixed costs are reduced by $47,500 is Oa. 10,644 units Ob. 13,306 units Oc. 19,958 units Od. 15,967 units
Expert Solution
Introduction:

Break-even point is the number of units position where the company is making no profit no loss.

Fixed costs are costs that remains constant and does not affect with the number of units sold or produced.4

Contribution margin takes into consideration only variable expenses.

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