Lewis Production Company had the following projected information: $\begin{array}{llr}
\text { Selling price per unit } &\$150\
\text {Variable cost per unit } &\$90\
\text { Total fixed costs } &\$300,000
\end{array}$

-What is the break-even point in units?

Question

Lewis Production Company had the following projected information: $\begin{array}{llr}
  \text { Selling price per unit  } &\$150\
 \text {Variable cost per unit  } &\$90\
 \text {  Total fixed costs } &\$300,000
\end{array}$
 
-What is the break-even point in units?

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing total fixed costs by the contribution margin per unit (selling price per unit - variable cost per unit). Here, it is $300,000 / ($150 - $90) = 5,000 units.

Lewis Production Company Had the Following Projected Information -What Is the Break-Even Point in Units? A)2,000 Units B)3,333

Lewis Production Company Had the Following Projected Information -What Is the Break-Even Point in Units?
A)2,000 Units
B)3,333