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Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are $45,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $25,000.

Sagot :

The break-even point in sales units is 1800.

The break-even point in sales units is $91.07.

What is the breakeven point?

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

$45,000 / ($100 - $75) = 1800

Breakeven price = (fixed cost / quantity sold) + variable price per unit

Quantity sold = ($45,000 + 25,000) / (100q - 75q) = 2800

($45,000 / 2800) + $75 = $91.07

To learn more about breakeven, please check: https://brainly.com/question/17960037

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