Anthony Industries manufactures lawnmowers. The selling price of a lawnmower is $300 and variable costs are $180 per unit. Fixed costs are $1,200,000 per period. What is Anthony's break-even point in units?

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit (selling price - variable cost). Here, it is $1,200,000 / ($300 - $180) = 10,000 units.

Anthony Industries Manufactures Lawnmowers