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Break-Even Point Hilton Enterprises sells a product for $62 per unit. The variable cost is $42 per unit, while fixed costs ar

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Answer #1

(a) Break Even Point in Sales (Units) :-

Fixed cost/Contribution per unit

Contribution per unit = SP pu – VC pu

             = $62 - $42 = $20

BEP (Units) = $58000/$20 = 2900 units

(b) Break Even Point if the selling price were increased to $71 per unit :-

Revised contribution pu = $71 - $42 = $29

BEP (Units) = $58000/$29 = 2000 units

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