Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn's unit sales are 300 units more than anticipated, its break-even point will:

Question

Quizplus · Accepted Answer

The break-even point is determined by fixed costs, selling price, and variable costs, not by the number of units sold. Therefore, an increase in unit sales does not affect the break-even point.

Brooklyn Sells a Single Product to Wholesalers