The KMuir company is planning to sell a new product which they will sell for £55 each.Fixed costs are £35,000 per annum; variable costs are £35 per unit.How much do they need to sell to break-even?

Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing the fixed costs by the contribution margin per unit (selling price - variable cost). Here, it is £35,000 / (£55 - £35) = 1,750 units.

The KMuir Company Is Planning to Sell a New Product