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calculate the Breakeven number of units if the fixed expenses are $7,000 and the contribution margin is $60 per unit​

Sagot :

SalenaMd

Answer:

The break even number of units is 116.6666666667

Breakeven point is where neither profit nor

loss is incurred by a firm. It is where you have to make just as much as what you are spending.

Break even point (BEP) is computed as ;

= Fixed cost / Contribution margin

=

$7,000 / $60

= 116.6666666667 units.

Therefore, the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit is 116.6666666667 units

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