What is the break-even quantity for the following situation?
FC = $1,200 per week
VC = $2 per unit
Rev = $6 per unit
A)100
B)200
C)600
D)1,200
E)300

Name: What is the break-even quantity for the following situation? FC = $1,200 per week VC = $2 per unit Rev = $6 per unit A)100 B)200 C)600 D)1,200 E)300
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Question

Quizplus · Accepted Answer

The break-even quantity is calculated by dividing the fixed costs by the contribution margin per unit (selling price per unit minus variable cost per unit). Here, it is $1,200 / ($6 - $2) = 300 units.

What Is the Break-Even Quantity for the Following Situation