Young Company has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Price per unit } & \$ 40 \
\hline \text { Variable cost per unit } & 12 \
\hline \text { Fixed costs per month } & \$ 10,000 \
\hline
\end{array}$$ What are the required sales in units for Young to break even?

Question

Young Company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Price per unit } & \$ 40 \
\hline \text { Variable cost per unit } & 12 \
\hline \text { Fixed costs per month } & \$ 10,000 \
\hline
\end{array}$$ What are the required sales in units for Young to break even?

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit (Price per unit - Variable cost per unit). Here, it is $10,000 / ($40 - $12) = 450$ units.

Young Company Has Provided the Following Information What Are the Required Sales in Units for Young to l