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Wang co. Manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the break-even point in units

Respuesta :

The break even point in units of the given financial ledger and values is gotten as; 44444 units

What is the break even point?

We are given;

Selling price = $450

Variable cost = $270

Fixed costs = $8000000

Sales volume = $4200000

Break even point is defined as the point at which the total costs and sales are equal or where revenue and expenses are equal. The formula to calculate the break-even point is;

Break even point = Fixed Costs/(selling price - variable costs)

Break even point = 800000/(450 - 270)

Break even point (in units) ≈ 44444 units

Read more about Break even Point at; https://brainly.com/question/9212451

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