Assuming that the fixed costs of producing the new product are $1,000,000, and the variable costs...
Assuming that the fixed costs of producing the new product are $1,000,000, and the variable costs are $1,000 per unit, how many units does ABC Ltd. have to sell to break even at a price of $2,000?
Homework Answers
Units to Breakeven = 1000 Units
Working
| A | Sale Price per unit | $ 2,000.00 |
| B | Variable Cost per Unit | $ 1,000.00 |
| C=A - B | Unit Contribution | $ 1,000.00 |
| D | Total Fixed cost | $ 1,000,000.00 |
| E=D/C | Breakeven point in units | 1,000 |
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