Question

calculate the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit

Answer 1

Answer:

500 units

Explanation:

14x=7000. The breakeven point is where you have to make just as much as what you are spending. So your total would be 7000 and since it's 14 for each unit you're just looking for x and make it into an equation. 7000/14= 500 units

Answer 2

The break even number of units is 500

Breakeven point is where neither profit nor loss is incurred by a firm. It is where you have to make just as much as what you are spending.

Break even point (BEP) is computed as ;

= Fixed cost / Contribution margin

= $7,000 / $14

= 500 units.

Therefore, the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit is 500 units

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