Rave Corporation produces and sells a single product. Data concerning that product appear below: The break-even in monthly unit sales is closest to:

Question

Rave Corporation produces and sells a single product. Data concerning that product appear below:  The break-even in monthly unit sales is closest to:

Quizplus · Accepted Answer

To calculate the break-even point in units, use the formula:

Break-even point in units = Fixed costs / (Selling price per unit - Variable cost per unit)

In this case, the fixed costs are $43,200, the selling price per unit is $80, and the variable cost per unit is $32. So:

Break-even point in units = $43,200 / ($80 - $32) = 3,210 units (rounded to the nearest whole unit)

Therefore, the closest answer is C) 3,210 units.

Rave Corporation Produces and Sells a Single Product