Question

Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $22.00...

Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $22.00 per unit, and the sales price is $30.00 per unit. (Round to nearest unit if necessary.)

1,364

6,667

3,750

1,000

There is not enough information to calculate this number.

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Answer #1

Selling price per unit = $30

Variable cost per unit = $22

Fixed cost = $30,000

Contribution margin per unit = Selling price per unit - Variable cost per unit

= 30 - 22

= $8

Break even point in units = Fixed cost/Contribution margin per unit

= 30,000/8

= 3,750 units

Third option is the correct option

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