Young Guns Company, which sells tents. has provided the following information:
Question:
Young Guns Company, which sells tents. has provided the following information:
| Sales price per unit | $40 |
| Variable cost per unit | 12 |
| Fixed costs per month | $12,800 |
What are the required sales in units for Young to break even? (Round your answer up to the nearest whole unit.)
A. 1.067 units
B. 320 units
C. 247 units
D. 458 units
Break-even Analysis:
Under the break-even analysis, costs classify into fixed and variable. The income statement format is sales minus variable costs equals contribution margin minus fixed costs equals net operating income.
Answer and Explanation: 1
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View this answerTo calculate the required sales in units for break-even, the details needed are:
- contribution margin per unit is the sales price minus variable cost...
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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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