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A product’s selling price is $18 per unit. Each unit sold contribute $6 to the recovery of Fixed cost and profit.
Fixed cost of operation per year is : $84,000.
BEP (units) = Fixed cost / CM per unit
14,000
BEP =84000/6
answer equal =14000 units
14000 unit ,,,,,,,,,,,,,,,,,,
84000/6=14000 Units to break even level
Break-even point is achieved when the profit is equal to the complex fixed cost
84,000 /6 =14000 Units
14000 units should be sold in order to break-even.
agreed with all answers..sorry for late reply.
........................................agree with answers
<<<<>>>>>>>>>>>>14000 units
84000 ÷6 =14000 equivalent unit
Agree with the answers posted so far.
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