Accounting

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If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?
Answer

30,000 units

8,710 units

12,273 units

20,000 units

  • Accounting -

    (300000-30000)/(31-22)
    = 30000 units

  • Accounting -

    If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?

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