The Fanny Nanny Weight Monitors Corporation offers an annual diet plans for sale each year with information about nutrition, diet tips, and food substitutes. The finished product sells for $60, with a variable cost per unit of $27. The company has fixed operating costs of $1,250,000. What is its breakeven point?

Question

Quizplus · Accepted Answer

The breakeven point in units can be calculated using the formula: Breakeven Point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Plugging in the given values: $1,250,000 / ($60 - $27) = $1,250,000 / $33 = 37,878.7878, which rounds to 37,879 units.

The Fanny Nanny Weight Monitors Corporation Offers an Annual Diet