Neucon company needs to sell 6,000 circuit breakers to break even. Its unit variable cost is $441, and its unit selling price is $800. What is the fixed cost of this company?

Question

Quizplus · Accepted Answer

To find the fixed cost, use the break-even formula: Fixed Costs = (Selling Price - Variable Cost) * Break-even Quantity. Here, Fixed Costs = ($800 - $441) * 6,000 = $2,154,000.

Neucon Company Needs to Sell 6,000 Circuit Breakers to Break