I was given that the breakeven point is revenues of 1,000,000, fixed costs are 400,000, and variable costs are $12 per unit. I need to find the selling price.
I was given that the breakeven point is revenues of 1,000,000, fixed costs are 400,000, and variable costs are $12 per unit. I need to find the selling price.
We know that the break even point is:
Sales 1,000,000
VC something (12 per unit)
FC 400,000
Net Income 0
Therefore, VC must be 600,000
Therefore, how many units were sold?
12x = 600,000
x = 50,000 units
1,000,000 in sales for 50,000 units, means a unit selling price of $20 per unit.
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