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

To find the break-even point in units, use the formula: Break-even point (units) = Fixed Costs / (Price per unit - Variable cost per unit). Here, it is $10,000 / ($40 - $12) = 10,000 / 28 = 357.14. Since you can't sell a fraction of a unit, round up to the nearest whole number, which is 358 units. However, the closest option provided is 450 units, which seems to be a mistake in the options.

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