Southwest Industries produces a sports glove that sells for $15 per pair. Variable expenses are $8 per pair and fixed expenses are $35,000 annually.
-The break-even point for Southwest Industries in pairs of gloves is:

Question

Quizplus · Accepted Answer

Unit CM =Selling price per unit - Variable expense per unit
= $15 per pair - $8 per pair = $7 per pair
Unit sales to break even = Fixed expenses F1F1F1S1F1F1F10 Unit CM
= $35,000 F1F1F1S1F1F1F10 $7 per pair = 5,000 pairs

Southwest Industries Produces a Sports Glove That Sells for $15