The selling price of a Road King bicycle is $600, unit variable costs are $400, and total fixed costs are $5600. How many bicycles will Road King need to sell to breakeven?

Question

Quizplus · Accepted Answer

The breakeven point can be calculated using the formula: 
Breakeven Point = Total Fixed Costs / (Selling Price per unit - Unit Variable Cost)
Substituting the given values, we get: 
Breakeven Point = 5600 / (600 - 400) 
Breakeven Point = 28 
Therefore, Road King needs to sell 28 bicycles to breakeven.

The Selling Price of a Road King Bicycle Is $600