Answer:
$326,400
Explanation:
The breakeven point is the number of units of a product a company must sell for its total revenue to be equal to its total cost. The cost elements are fixed and variable. At breakeven, profit/loss is zero hence revenue or sales is equal to cost.
From the information given,
Variable cost per unit = $ 187,500/50,000
= $3.75
Sales per unit = $500,000/50,000
= $10
let the number of units sold at breakeven point be x
10x - 3.75x - 204,000 = 0
6.25x = 204,000
x = 32,640
Breakeven sales = 32,640 * $10
= $326,400
