The following data pertain to last month's operations: The break-even point in dollar sales is: ...
Question:
The following data pertain to last month's operations:
| Selling price | $20 per unit |
| Variable expenses | $15 per unit |
| Fixed expenses | $4,500 |
The break-even point in dollar sales is:
A) $18,000
B) $6,000
C) $11,250
D) $7,500
Break-even Value of Sales:
Break-even value of the sales represents the generated sales revenue that is equal to meet the company's variable and fixed costs and does not result in any excess or less than the costs incurred to generate the sales. The break-even point can be expressed in terms of number of units of sales and also in terms of the dollar value of sales.
Answer and Explanation: 1
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View this answerCorrect answer: Option A) $18,000
Explanation:
As per the data:
- Selling price = $20 per unit
- Variable expenses = $15 per unit
- Fixed expenses =...
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How to Calculate the Break-Even Point - Definition & Formula
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Chapter 5 / Lesson 28
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See how to calculate break-even point (in units and dollars). See the variables of the break-even point formula and examples. Understand the purpose of break-even analysis.
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