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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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