If the unit selling price is $186 and the variable cost per unit is $53 and the total fixed costs are $612,550, state the break even point in units.
If the unit selling price is $186 and the variable cost per unit is $53 and the total fixed costs are $612,550, state the break even point in units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
If the unit selling price is $186 and the variable cost per unit is $53 and the total fixed costs are $612,550, state the break even point in units.(Round to the nearest whole number and do not type the word "units".)
Expert Solution

Step 1
Given;
Selling Price = $ 186
Variable cost per unit = $53
Fixed cost = $612,550
Formula for calculating Break-even point (units) = Fixed Cost / Contribution per Unit
Contribution per Unit = Selling Price - Variable cost per unit
= 186 - 53
= $133
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