Question

costs $123, what are the break-even sales (units) if fixed If fixed costs are $1,451,000, the unit selling price is $209, and the unit variable costs are increased by $31,700? Ca. 25,861 units b. 13,793 units c. 17,241 units Huld. 20,689 units

Answer 1

c. 17,241 units

Unit contribution margin = Unit selling price - Unit variable cost

Unit contribution margin = $209 - $123

Unit contribution margin = $86 per unit

Break-even sales(units) = New fixed costs / Unit contribution margin

Break-even sales(units) = ($1,451,000 + $31,700) / $86

Break-even sales(units) = 17,241 units