The new Corina watch has an expected selling price per watch of $42,the projected variable cost per unit is $24,and estimated fixed costs per month are $24,120. The expected breakeven point in units per month is

Question

Quizplus · Accepted Answer

The formula to calculate the breakeven point is:

Breakeven Point (in units) = Fixed Costs / (Price per unit - Variable cost per unit)

Substituting the given values:

Breakeven Point (in units) = $24,120 / ($42 - $24)

Breakeven Point (in units) = 1,340 watches

Therefore, the best choice is C, as it represents the expected breakeven point in units per month.

The New Corina Watch Has an Expected Selling Price Per