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Sagot :
The break-even point for a new jet ski with $27,000 in fixed manufacturing costs, $10,000 in sales price, and $1,000 in variable unit costs is 3 units.
What is a break-even point ?
By comparing an asset's market price to its initial cost, one can calculate the break-even point (break-even price) for a transaction or investment. The break-even point is attained when the two prices are equal.
The entire fixed costs of production are divided by the revenue per unit less the variable costs per unit to determine the break-even threshold in corporate accounting. The expenses that remain the same no matter how many units are sold are referred to in this sense as fixed costs. In other words, the break-even point is the manufacturing level where a product's total revenues and total expenses are equal.
To solve this question :
Contribution per unit :
= (sales price - variable cost per unit )
= $10,000 − $1,000
= $9,000.
The fixed costs will be divided by contribution per unit:
+$27,000 ÷ $9,000
= 3 units.
Therefore, the break even point is 3 units.
To know more about, break even point, visit :
https://brainly.com/question/13680956
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