Young Guns 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 Young to break even? (Round your answer up to the nearest whole unit. )

Question

Young Guns 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 Young 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) = 373.53. Rounding up gives 374 units.

Young Guns Company,which Sells Tents,has Provided the Following Information What Are the Required Sales in Units for Young to