Khayyam Company, which sells tents, has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Sales price per unit } & \$ 45 \
\hline \text { Variable cost per unit } & 11 \
\hline \text { Fixed costs per month } & \$ 12,700 \
\hline
\end{array}$$ What are the required sales in units for Khayyam to break even? (Round your answer up to the nearest whole unit.)

Question

Khayyam Company, which sells tents, has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales price per unit } & \$ 45 \
\hline \text { Variable cost per unit } & 11 \
\hline \text { Fixed costs per month } & \$ 12,700 \
\hline
\end{array}$$ What are the required sales in units for Khayyam to break even? (Round your answer up to the nearest whole unit.)

Quizplus · Accepted Answer

To find the break-even point in units, use the formula: Break-even point (units) = Fixed Costs / (Sales price per unit - Variable cost per unit). Here, it is $12,700 / ($45 - $11) = 374 units.

Khayyam Company, Which Sells Tents, Has Provided the Following Information