Company A sells a product for $100. The total unit variable costs are $60. Fixed costs as in its ac-count are $20,000. How many products does the company have to sell to achieve break-even point?
Break even point = Fixed costs/(Price-variable cost). In this case, break even point = 20,000/(100-60) = 500
[Reference: CIPS study guide page 28-29, LO 1, AC 1.2]
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit