If the sale price per unit is $75,the variable expense per unit is $45,and total fixed expenses are $1,155,000,what will the breakeven sales in units be?

Question

Quizplus · Accepted Answer

To calculate the breakeven point, we need to use the following formula:

Breakeven Point (in units) = Total Fixed Expenses / (Sale Price per Unit - Variable Expenses per Unit)

Substituting the given values in the formula, we get:

Breakeven Point = $1,155,000 / ($75 - $45)

Breakeven Point = $1,155,000 / $30

Breakeven Point = 38,500 units

Therefore, the breakeven sales in units will be 38,500 units, which is option C.

If the Sale Price Per Unit Is $75,the Variable Expense