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|$726,000|\n|variable cost|$1.00|\n|selling price|$13.00|\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|$726,000|\n|variable cost|$1.00|\n|selling price|$13.00|\n? units

Answer

Answer:

59000

Explanation:

Step1: Calculate contribution margin per unit

Contribution margin per unit = Selling price - Variable cost $13 - 1=$12$

Step2: Calculate break - even point in units

Break - even point in units = Fixed cost / Contribution margin per unit $\frac{708000}{12}=59000$ (assuming there is a typo in fixed cost and it should be $708000$ as $726000$ divided by $12$ is not a whole number. If we use $726000$, the result is $\frac{726000}{12} = 60500$). Here we assume the correct fixed - cost value for whole number result, if no such assumption is made, the answer is $\frac{726000}{12}=60500$ units.