given the information in the table below, how many units will be required to be sold to hit the break - even…

given the information in the table below, how many units will be required to be sold to hit the break - even point?\n|fixed cost|$513,000|\n|variable cost|$0.80|\n|selling price|$9.80|\n? units

given the information in the table below, how many units will be required to be sold to hit the break - even point?\n|fixed cost|$513,000|\n|variable cost|$0.80|\n|selling price|$9.80|\n? units

Answer

Explanation:

Step1: Calculate contribution margin per unit

Contribution margin per unit = Selling price - Variable cost $9.80 - 0.80=9$

Step2: Calculate break - even point in units

Break - even point in units = Fixed cost / Contribution margin per unit $\frac{513000}{9}=57000$

Answer:

57000