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I need help figuring out the break even point in units. The information that I have is for the company is:

Net sales$5,000,000

Variable costs:
Manufacturing2,600,000
Marketing400,000

Fixed costs:
Manufacturing$1,400,000
Marketing300,000
Administrative200,000
and 200,000 units were sold. Any help would be appreciated.

2006-12-12 04:43:05 · 1 answers · asked by Butterfly Kisses 2 in Education & Reference Homework Help

1 answers

First add up all your costs both fixed and variable. Then find out cost per unit.(# of units over total cost) Then price per unit.(net salesover # of units sold) Your break even point is how many units have to be sold to equal the total costs. That's the point where profit begins. Hope I helped.

2006-12-12 05:02:25 · answer #1 · answered by Ricky J. 6 · 0 0

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