given the information in the table below, how many units will be required to be sold to hit the break - even…

given the information in the table below, how many units will be required to be sold to hit the break - even point?\n|fixed cost|$340,000|\n|variable cost|$1.00|\n|selling price|$5.00|\n? units

given the information in the table below, how many units will be required to be sold to hit the break - even point?\n|fixed cost|$340,000|\n|variable cost|$1.00|\n|selling price|$5.00|\n? units

Answer

Explanation:

Step1: Calculate contribution margin per unit

Contribution margin per unit = Selling price - Variable cost $= 5 - 1=$4$

Step2: Calculate break - even point in units

Break - even point (in units) = $\frac{Fixed\ cost}{Contribution\ margin\ per\ unit}$ $=\frac{340000}{4}= 85000$

Answer:

85000