mz corporation produces fudge bars. total fixed cost is $55,500. each package of fudge bars sells for $4.95…

mz corporation produces fudge bars. total fixed cost is $55,500. each package of fudge bars sells for $4.95 with a variable unit cost of $3.10. what is the breakeven point for mz corporation?

mz corporation produces fudge bars. total fixed cost is $55,500. each package of fudge bars sells for $4.95 with a variable unit cost of $3.10. what is the breakeven point for mz corporation?

Answer

Explanation:

Step1: Calculate contribution margin per unit

Contribution margin per unit = Selling price per unit - Variable cost per unit. So, $4.95 - 3.10=$1.85$.

Step2: Calculate break - even point in units

Break - even point (in units) = Total fixed costs / Contribution margin per unit. Thus, $\frac{55500}{1.85}=30000$.

Answer:

30000