Break-Even Point
Nicolas Inc. sells a product for $63 per unit. The variable cost is $32 per unit, while fixed costs are $284,456.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $69 per unit.
a. Break-even point in sales units
b. Break-even point if the selling price were increased to $69 per unit
9,176 units
units
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Check My Work
a. Unit sales price minus unit variable costs equals unit contribution margin.
b. Fixed costs divided by unit contribution margin = break-even point in units.