Washington Bottling Company provides the following information about its single product. What is the breakeven point in units?

Question

Washington Bottling Company provides the following information about its single product.  What is the breakeven point in units?

Quizplus · Accepted Answer

The breakeven point in units can be calculated using the formula:
Breakeven Point = Fixed Costs / (Price per unit - Variable Costs per unit)

In this case, the fixed costs are $391,500 and the variable costs per unit are $3.30. The price per unit is $7.50 - $0.60 = $6.90 (since the discount is subtracted from the original price). Plugging these values into the formula, we get:
Breakeven Point = $391,500 / ($6.90 - $3.30) = 56,100 units.

Therefore, the best choice is C.

Washington Bottling Company Provides the Following Information About Its Single