Wear All,a T-shirt company,is conducting a breakeven analysis on unbleached cotton tops.Fixed costs are $100,000 and the per-unit contribution to fixed costs is $20.To break even,the company must sell _____ units.

Question

Quizplus · Accepted Answer

To break even, Wear All must cover its fixed costs of $100,000. With a per-unit contribution of $20, the company needs to sell $100,000 / $20 = 5,000 units.

Wear All,a T-Shirt Company,is Conducting a Breakeven Analysis on Unbleached