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Find the break-even point. You are opening a business that sells T-Shirts: Your business currently has 5,000 Dhs in Fixed Cos
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Answer #1

Selling price per unit = 7.5 Dhs

Variable cost per unit = 6 Dhs

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

= 7.5-6

= 1.5 Dhs

Fixed cost = 5,000 Dhs

Break even point = Fixed cost / Contribution margin per unit

= 5,000/1.5

= 3,333 T-shirts

The break even point for business = 3,333 T-shirts

Kindly comment if you need further assistance. Thanks‼!

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