IKEA has a breakeven volume of 100,000 units for a new lamp. The variable cost per unit is $75 and the revenue per unit is $99.99. The fixed costs are:

a. $2,500,000.
b. $5,000,000.
c. $3,333,000.
d. $2,499,000.

Break even point is the sale value where all the variable and fixed cost covered by the business and the business is on No Profit and No Loss position. So, using break-even formula we can calculate the fixed cost value.

Break-even point = Fixed Cost / Contribution per unit

100,000 = Fixed cost / $24.99

Fixed cost = 100,000 x $24.99

Fixed cost = $2,499,000

IKEA has a breakeven volume of 100,000 units for a new lamp. The variable cost per unit is $75 and the revenue per unit is $99.99. The fixed costs are: a. $2,500,000. b. $5,000,000. c. $3,333,000. d. $2,499,000.

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IKEA has a breakeven volume of 100,000 units for a new lamp. The variable cost per unit is $75 and the revenue per unit is $99.99. The fixed costs are:

a. $2,500,000.
b. $5,000,000.
c. $3,333,000.
d. $2,499,000.