contestada

The Motor Works is considering an expansion project with estimated fixed costs of $127,000, depreciation of $16,900, variable costs per unit of $41.08, and an estimated sales price of $79.90 per unit. How many units must the firm sell to break even on a cash basis

Respuesta :

facundobuzzetti

Answer:

Break-even point in units= 3,271

Explanation:

Giving the following information:

estimated fixed costs of $127,000

variable costs per unit of $41.08

Selling price of $79.90 per unit.

Because it is requiring the cash break-even point, we will not take into account the depreciation expense.

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 127,000 / (79.9 - 41.08)

Break-even point in units= 3,271

Otras preguntas