What is the break-even point in units?

Business & Finance
Tutor: None Selected Time limit: 1 Day

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

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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




BEP Swim trunks.xlsx

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Oct 3rd, 2015

Thank you!

Oct 3rd, 2015

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