A company sells its product for $30 and has a variable operating cost of $15 per unit and produces a $10 per unit contribution to fixed costs. If the firm has total fixed costs of $30,000, what is the quantity of units that the firm should produce in order to breakeven?
A) 2000 units
B) 3000 units
C) 2020 units
D) 1900 units

Question

Quizplus · Accepted Answer

Breakeven point = Fixed costs / Contribution per unit= 30,000 / 10= 3,000 units

A Company Sells Its Product for $30 and Has a Variable