Given the following information, what is the breakeven level of sales?
Salary &ensp; &ensp; $200,000
Fixed costs $100,000
Variable costs &ensp; &ensp; $ 100 per item
Sales price &ensp; &ensp; $ 150 per item
A) 50
B) 150
C) 6,000
D) 12,000

Question

Quizplus · Accepted Answer

Breakeven level of sales = Fixed costs / (Sales price per unit - Variable cost per unit)= 100,000 / (150 - 100)= 100,000 / 50= 2,000 units

Given the Following Information, What Is the Breakeven Level of Sales