Question

William clark wants to know his breakeven point. his selling price is $20 per unit, his fixed costs are $6,000, and the variable costs per unit are $10. what is his breakeven quantity?

Answer 1

The breakeven quantity is  600.

What is the breakeven quantity?

Breakeven quantity are the number of  units produced and sold at which net income is zero. At the breakeven quantity, the firm is neither earning a profit or a loss.

Breakeven quantity = fixed cost / price – variable cost per unit

$6,000 / ($20 - $10) = 600

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