Alerts
Wishlist
Cart
Sign In
Categories
Current Affairs & GK
Current Affairs
Show All Current Affairs & GK
eBooks
General Aptitude
Arithmetic Aptitude
Data Interpretation
Show All General Aptitude
General Knowledge
Basic General Knowledge
General Science
Show All General Knowledge
Medical Science
Anatomy
Biochemical Engineering
Biochemistry
Biotechnology
Microbiology
Show All Medical Science
Technical
Database
Digital Electronics
Electronics
Networking
Show All Technical
Verbal and Reasoning
Logical Reasoning
Verbal Ability
Verbal Reasoning
Show All Verbal and Reasoning
›
A company has fixed costs of $30,000 and a contribution margin of $15 per unit.
A company has fixed costs of $30,000 and a contribution margin of $15 per unit. How many units must be sold to break even?
Expand All
Collapse All
Practice Questions
1 question
Q1
A company has fixed costs of $30,000 and a contribution margin of $15 per unit. How many units must be sold to break even?
1,500 units
2,000 units
2,500 units
3,000 units
Show Solution
Copy
Break-even Point (in units) = Fixed Costs / Contribution Margin per Unit = $30,000 / $15 = 2,000 units.
Questions & Step-by-step Solutions
1 item
Q
Q: A company has fixed costs of $30,000 and a contribution margin of $15 per unit. How many units must be sold to break even?
Solution:
Break-even Point (in units) = Fixed Costs / Contribution Margin per Unit = $30,000 / $15 = 2,000 units.
Steps: 6
Show Steps
Step 1: Identify the fixed costs. In this case, the fixed costs are $30,000.
Step 2: Identify the contribution margin per unit. Here, the contribution margin is $15 per unit.
Step 3: Use the break-even formula: Break-even Point (in units) = Fixed Costs / Contribution Margin per Unit.
Step 4: Plug in the numbers: Break-even Point = $30,000 / $15.
Step 5: Calculate the result: $30,000 divided by $15 equals 2,000 units.
Step 6: Conclusion: The company must sell 2,000 units to break even.
Related Questions
I
If a company has a net income of $250,000 and total revenue of $1,000,000, what
Question: If a company has a net income of $250,000 and total revenue of $1,000,000, what is the pro..
A
A business incurs a loss of 15% on selling a product for $425. What was the cost
Question: A business incurs a loss of 15% on selling a product for $425. What was the cost price?Opt..
I
If a company has total assets of $1,000,000 and total liabilities of $600,000, w
Question: If a company has total assets of $1,000,000 and total liabilities of $600,000, what is the..
A
A firm has a current ratio of 2:1 and current liabilities of $50,000. What are t
Question: A firm has a current ratio of 2:1 and current liabilities of $50,000. What are the current..
I
If a product is sold for $240 after a discount of 20%, what was the original pri
Question: If a product is sold for $240 after a discount of 20%, what was the original price?Options..
‹
Biology (School & UG)
Chemistry (School & UG)
Civil Engineering
Commerce & Accountancy
Computer Science & IT
Current Affairs & GK
Data Structures & Algorithms
eBooks
Electrical & Electronics Engineering
English (School)
General Aptitude
General Knowledge
General Knowledge & Current Affairs
Languages & Literature
Law & Legal Studies
Major Competitive Exams
Mathematics (School)
Mechanical Engineering
Medical Science
Physics (School & Undergraduate)
Quantitative Aptitude & Reasoning
Social Science (School)
Technical
Verbal and Reasoning
Vocational & Skill Development
›
Soulshift Feedback
×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy
?
0
1
2
3
4
5
6
7
8
9
10
Not likely
Very likely
✕
↑
