With fixed costs of $100,000 and a variable cost of $8,a $15 CD must sell at least 20,000 units to break even.

Name: With fixed costs of $100,000 and a variable cost of $8,a $15 CD must sell at least 20,000 units to break even.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To break even, the total revenue must equal total costs. The break-even point in units is calculated as fixed costs divided by the contribution margin per unit (selling price - variable cost). Here, it would be $100,000 / ($15 - $8) = 14,286 units, not 20,000.

With Fixed Costs of $100,000 and a Variable Cost of $8,a