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? fixed cost $120,000 variable cost $0.20 selling price $2.20 ? units

given the information in the table below, how many units will be required to be sold to hit the break - even point? fixed cost $120,000 variable cost $0.20 selling price $2.20 ? units

Answer

Explanation:

Step1: Recall break - even formula

The break - even point (in units) formula is $Q=\frac{FC}{P - VC}$, where $Q$ is the quantity of units, $FC$ is the fixed cost, $P$ is the selling price per unit, and $VC$ is the variable cost per unit.

Step2: Identify values from the table

$FC = 120000$, $P=2.20$, $VC = 0.20$.

Step3: Substitute values into formula

$Q=\frac{120000}{2.20 - 0.20}$.

Step4: Calculate the result

$Q=\frac{120000}{2}=60000$.

Answer:

60000