The price per unit is $1.00.The average variable cost per unit is 60 cents.The total fixed cost is $20,000.What is the break-even point?
A)75,000 units
B)50,000 units
C)20,000 units
D)33,334 units
E)40,000 units

Question

Quizplus · Accepted Answer

The BEP,in units,can be found by dividing total fixed costs (TFC)by the fixed-cost (FC)contribution per unit.The fixed-cost (FC)contribution per unit is the assumed selling price per unit minus the variable cost per unit.

The Price Per Unit Is $1