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What is the break-even point in sales dollars if the break-even point in units i

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Question: What is the break-even point in sales dollars if the break-even point in units is 1,000 and the selling price per unit is $25?

Options:

  1. $15,000
  2. $20,000
  3. $25,000
  4. $30,000

Correct Answer: $25,000

Solution: 

Break-even Sales = Break-even Units * Selling Price per Unit = 1,000 * $25 = $25,000.

What is the break-even point in sales dollars if the break-even point in units i

Practice Questions

Q1
What is the break-even point in sales dollars if the break-even point in units is 1,000 and the selling price per unit is $25?
  1. $15,000
  2. $20,000
  3. $25,000
  4. $30,000

Questions & Step-by-Step Solutions

What is the break-even point in sales dollars if the break-even point in units is 1,000 and the selling price per unit is $25?
  • Step 1: Identify the break-even point in units, which is given as 1,000 units.
  • Step 2: Identify the selling price per unit, which is given as $25.
  • Step 3: Use the formula for break-even sales: Break-even Sales = Break-even Units * Selling Price per Unit.
  • Step 4: Substitute the values into the formula: Break-even Sales = 1,000 units * $25.
  • Step 5: Calculate the result: 1,000 * 25 = $25,000.
  • Step 6: The break-even point in sales dollars is $25,000.
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