Question

g A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000. The break-even point in units is: Group of answer choices

Answer 1

Answer:

14,000 units

Explanation:

Break even point in unit is calculated as ; Fixed costs / Contribution margin

Where contribution margin = Sales per unit - Variable cost per unit

Therefore, Break even point in unit is

= $98,000 / ($12 - $5)

= 14,000 units