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If a company has a break-even point of 1,000 units and sells each unit for $50,

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Question: 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?

Options:

  1. $50,000
  2. $25,000
  3. $100,000
  4. $75,000

Correct Answer: $50,000

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.

If a company has a break-even point of 1,000 units and sells each unit for $50,

Practice Questions

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?
  1. $50,000
  2. $25,000
  3. $100,000
  4. $75,000

Questions & Step-by-Step Solutions

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?
  • 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.
  • Break-even Analysis – Understanding the point at which total revenue equals total costs, resulting in no profit or loss.
  • Revenue Calculation – Calculating total revenue by multiplying the number of units sold by the selling price per unit.
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