Answered

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16) (2 marks)
Fixed Costs = £12,000 Variable Cost per unit = £18
Selling price per unit = £88
How many products do we need to sell to break even?

Sagot :

Samawati

Answer:

171 units

Explanation:

Break-even point = fixed cost / Divide by contribution margin per unit.

fixed costs = £12,000

Contribution margin per unit = selling price - variable cost per unit

Selling  price £88: variable cost  £18

contribution margin per unit

=  £88 -  £18

=£70

Break-even point = £12,000/£70

=171.42

=171 units

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