hess inc sells a single product with a contribution martgin of $12 per unit and fixed costs of $74400 and sales for the current year of $100000. how much is hess break even point?
$25,600
To calculate the breakeven point for Hess Inc., we need to determine the quantity of units they need to sell in order to cover their fixed costs.
The formula to calculate the breakeven point is:
Breakeven Quantity = Fixed Costs / Contribution Margin per unit
Let's plug in the values given in the question:
Fixed Costs = $74,400
Contribution Margin per unit = $12
Breakeven Quantity = $74,400 / $12
Now, let's perform the calculation:
Breakeven Quantity = 6,200 units
Therefore, Hess Inc. needs to sell 6,200 units in order to reach the breakeven point.