CopperZ Company has variable costs which are 40% of its unit selling price and fixed costs of $30,000.How much sales will CopperZ report at its break-even point in dollars?

Question

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Explanation:Break-even point is where total revenue equals total cost. Let x be the unit selling price. Variable costs are 40% of x, or 0.4x. Total costs are 0.4x + 30,000. Total revenue is x. At break-even, total revenue = total costs, so x = 0.4x + 30,000. Solving for x, we get x = $50,000.

CopperZ Company Has Variable Costs Which Are 40% of Its