Smith Company sells a single product at a selling price of $30 per unit.Variable expenses are $12 per unit and fixed expenses are $41,400.Smith's break-even point is:

Question

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $30 per unit - $12 per unit = $18 per unit
Unit sales to break even = Fixed expenses F1F1F1S1F1F1F10 Unit CM
= $41,400 F1F1F1S1F1F1F10 $18 per unit
2,300 units

Smith Company Sells a Single Product at a Selling Price