##### What is the break-even point in units?

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The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is \$34.56. The variable cost per unit is \$18.46, Poseidon Swim has average fixed costs per year of \$34,963.

What is the break-even point in units for Poseidon Swim?

Oct 3rd, 2015

Thank you for the opportunity to help you with your question!

 Selling price \$34.56 per swim trunk Less: Variable cost \$18.46 per swim trunk Contribution margin \$16.10 per swim trunk Fixed Cost \$34,963 Break-even point in units = Fixed cost/ Contribution margin Break-even point in units = \$34,963/\$16.10 2,171.61 Swim Trunks Break-even point in units 2,172 Swim Trunks

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 3rd, 2015

Thank you!

Oct 3rd, 2015

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Oct 3rd, 2015
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Oct 3rd, 2015
Sep 21st, 2017
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