The fixed cost of Boeing's new aircraft,the 797,is $6 billion.The average variable cost is $100,000,000.The sales price is $ 140,000,000.What is the projected breakeven volume?

Question

Quizplus · Accepted Answer

The breakeven volume is calculated by dividing the fixed costs by the contribution margin per unit (sales price - variable cost). Here, $6 billion / ($140 million - $100 million) = 150 units.

The Fixed Cost of Boeing's New Aircraft,the 797,is $6 Billion