A product sells for $255 per unit, and its variable costs per unit are $153. The

Question

A product sells for $255 per unit, and its variable costs per unit are $153. The fixed costs are $416,000. What is the break-even point in dollar sales? (Do not round intermediate calculations.)   $416,000.   $1,040,000.   $693,333.   $1,631.   $4,078.   $416,000.   $1,040,000.   $693,333.   $1,631.   $4,078. A product sells for $255 per unit, and its variable costs per unit are $153. The fixed costs are $416,000. What is the break-even point in dollar sales? (Do not round intermediate calculations.)

Explanation / Answer

Hi,

Please find the answer as follows;

Break Even Point = Fixed Cost/Contribution Per Unit*Sales Price = 416000/(255 - 153)*255 = 1040000

Answer is 1040000.

Thanks.

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