A product is sold at $40 per unit, the variable expense per unit is $20, and total fixed expenses are $200,000, what are the breakeven sales in dollars?

Question

Quizplus · Accepted Answer

The breakeven point in dollars can be calculated using the formula: Breakeven Sales = Fixed Expenses / (1 - Variable Cost per Unit / Price per Unit). Plugging in the given values: $200,000 / (1 - $20 / $40) = $200,000 / 0.5 = $400,000.

A Product Is Sold at $40 Per Unit, the Variable