contestada

Calculate the breakeven point and contribution margin.

Fixed cost: $65,000
Selling price per unit: $5.00
Variable cost per unit: $1.00

Required: Breakeven point and contribution margin

Respuesta :

The breakeven point is 16,250.

The contribution margin is $4.

What is the contribution margin and the breakeven point?

Contribution margin is the difference between the price of an item and the variable cost per unit.

Contribution margin = price - variable cost per unit

$5 - 1 = $4

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / contribution margin

$65,000 / $4 = 16,250

To learn more about breakeven point, please check: https://brainly.com/question/15186113

#SPJ1

Otras preguntas