If fixed costs are $46,800, the unit selling price is $42, and the unit variable costs are $24, the break-even sales (units) if the variable costs are decreased by $2 is

Question

Quizplus · Accepted Answer

The break-even point in units can be calculated using the formula: Break-even point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). If the variable costs decrease by $2, the new variable cost per unit is $22 ($24 - $2). Therefore, the break-even point = $46,800 / ($42 - $22) = $46,800 / $20 = 2,340 units.

If Fixed Costs Are $46,800, the Unit Selling Price Is