Answered: Variable cost as a percentage of sales…

Variable cost as a percentage of sales = 60% Unit variable cost = $30 Fixed costs = $200,000 What is the break-even point in units?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Question

Given the following:

Variable cost as a percentage of sales = 60%
Unit variable cost = $30
Fixed costs = $200,000

What is the break-even point in units? If required, round answer to nearest whole number.

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