Assume that StoneWorks has total fixed costs of $31,540 for the period. Each unit sells for $20. The variable cost per unit is $12.40. How many units must be sold to break even?

Question

Quizplus · Accepted Answer

To find the break-even point in units, use the formula: Break-even point (units) = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Here, it is $31,540 / ($20 - $12.40) = 4,150 units.

Assume That StoneWorks Has Total Fixed Costs of $31,540 for the Period