Knowee
Questions
Features
Study Tools

TechFab Manufacturing sells a product for $50 per unit. The variable cost per unit is $30, and the total fixed costs are $10,000. How many units must TechFab Manufacturing sell to break even?

Question

TechFab Manufacturing sells a product for 50perunit.Thevariablecostperunitis50 per unit. The variable cost per unit is 30, and the total fixed costs are $10,000. How many units must TechFab Manufacturing sell to break even?

🧐 Not the exact question you are looking for?Go ask a question

Solution

To calculate the break-even point, we need to know the fixed costs, the selling price per unit and the variable cost per unit.

Step 1: Calculate the contribution margin per unit. This is the selling price per unit minus the variable cost per unit. In this case, it's 5050 - 30 = $20.

Step 2: Calculate the break-even point in units by dividing the total fixed costs by the contribution margin per unit. In this case, it's 10,000/10,000 / 20 = 500 units.

So, TechFab Manufacturing must sell 500 units to break even.

This problem has been solved

Similar Questions

Company X has monthly fixed costs of $150,000 and a unit variable cost of $50. How many units do they have to sell at $100 to break even?

Our company sells a product for $120 per unit. Variable costs are $90 per unit and fixed costs are $9,000. The company expects to sell 500 units this year. How many units must we sell to break even?Group of answer choices300320360400

Laura owns a T-shirt business with fixed costs of $50,000 a year. Her selling price per shirt is $15. Each shirt has a variable cost of $5. How many shirts does Laura need to sell to break even?Responses15,00015,00025,00025,0003,3333,3335,0005,000

A company manufactures and sells widgets. The following information is available:• Each widget sells for $100.• The variable cost per widget is $50.• Total fixed costs per month are $300,000.How many widgets does the company need to sell each month to break even? 6,000 4,500 3,000 2,000

Fill in the Blank QuestionFill in the blank question.RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. How many units must be produced to break-even ?

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.