Frank corporation has a single product. Its selling price is $80 and the variable costs are $30. The company’s fixed expenses are $5,000. The company’s break-even point in unit sales is 100 units.
How to calculate the unit sales?
Unit CM = Selling price of $80 - Variable
expense of $30 = $50.
Unit sales to break-even Fixed expenses of = $5,000 = $50 = 100 units.
What are unit sales?
On the balance sheet, unit sales represent the total sales of a product in a given period. This sales information is used to determine the price point to achieve profit per unit relative to actual production costs.
To learn more about unit sales, refer to:
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