Question

A furniture manufacturer specializes in wood tables. The tables sell for $ 150 and incur $ 60 per unit in variable costs. The company has $ 7 comma 600 in fixed costs per month. Calculate the breakeven point in units under each independent scenario.

Answer 1

Answer:

Break-even point= 84 units

Explanation:

Giving the following information:

The tables sell for $ 150 and incur $ 60 per unit in variable costs. The company has $7,600 in fixed costs per month.

To calculate the break-even point in units, we need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 7,600/ (150 - 60)= 84 units