If a company has a break-even point of 1,000 units and sells each unit for $50, what is the total revenue at the break-even point?
Practice Questions
1 question
Q1
If a company has a break-even point of 1,000 units and sells each unit for $50, what is the total revenue at the break-even point?
$50,000
$25,000
$100,000
$75,000
Total revenue at the break-even point is calculated as Break-even Units (1,000) multiplied by Selling Price per Unit ($50), resulting in $50,000.
Questions & Step-by-step Solutions
1 item
Q
Q: If a company has a break-even point of 1,000 units and sells each unit for $50, what is the total revenue at the break-even point?
Solution: Total revenue at the break-even point is calculated as Break-even Units (1,000) multiplied by Selling Price per Unit ($50), resulting in $50,000.
Steps: 5
Step 1: Identify the break-even point, which is given as 1,000 units.
Step 2: Identify the selling price per unit, which is given as $50.
Step 3: Multiply the break-even units (1,000) by the selling price per unit ($50).
Step 4: Calculate 1,000 units * $50 = $50,000.
Step 5: The total revenue at the break-even point is $50,000.
