If total fixed costs are $10,000, variable costs per unit are $5, and the price per unit is $15, what is the breakeven quantity?
A) 500
B) 667
C) 1,000
D) 2,000
E) 5,000

Question

Quizplus · Accepted Answer

The breakeven quantity is calculated by dividing total fixed costs by the contribution margin per unit (price per unit - variable cost per unit). Here, it is $10,000 / ($15 - $5) = 1,000 units.

If Total Fixed Costs Are $10,000, Variable Costs Per Unit