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|$660,000|\n|variable cost|$5.60|\n|selling price|$13.60|\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|$660,000|\n|variable cost|$5.60|\n|selling price|$13.60|\n? units

Answer

Explanation:

Step1: Calculate contribution margin per unit

Contribution margin per unit = Selling price - Variable cost $= 13.60 - 5.60=$8$

Step2: Calculate break - even point in units

Break - even point (in units)=$\frac{\text{Fixed Cost}}{\text{Contribution Margin per unit}}$ $=\frac{660000}{8}=82500$

Answer:

82500