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?\nfixed cost: $320,000\nvariable cost: $0.80\nselling price: $4.80\n? units

given the information in the table below, how many units will be required to be sold to hit the break-even point?\nfixed cost: $320,000\nvariable cost: $0.80\nselling price: $4.80\n? units

Answer

Explanation:

Step1: Calculate contribution margin per unit

Subtract variable cost from selling price. $\text{Contribution Margin} = $4.80 - $0.80 = $4.00$

Step2: Apply break-even formula

Divide fixed cost by contribution margin. $\text{Break-Even Units} = \frac{$320,000}{$4.00}$

Answer:

80,000 units