At Bahama Foods, the break-even point is 1,600 units.If fixed costs total $44,000 and variable costs are $12 per unit, what is the selling price per unit?

Question

Quizplus · Accepted Answer

To find the selling price per unit, use the break-even formula: Fixed Costs / (Selling Price - Variable Cost) = Break-even Units. Plug in the values: $44,000 / (Selling Price - $12) = 1,600. Solving for the Selling Price gives $39.50.

At Bahama Foods, the Break-Even Point Is 1,600 Units