May you please help me with this question? PNG Electric Company manufactures a number of electric products. Rechargeable light is one of PNG’s products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights.
Compute break-even point of the company in dollars and units.
Sales = Variable expenses + Fixed expenses
$180x = $126x + $270,000
$180x – $126x = $270,000
$54x = $270,000
Q = $270,000/$54
Q = 5,000 Units
Sales - Variable Cost - Fixed Cost = $180,000