How can find a break even point in monetary value(dollars), units and percentage if I am given this question; Normal plant capacity 200,000 units
Fixed cost $120,000.00
variable costs $1.35/unit
Selling price $2.25/unit

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Originally Posted by Kumvera

How can find a break even point in monetary value(dollars), units and percentage if iam given this question; Normal plant capacity 200,000 units
Fixed cost $120,000.00
variable costs $1.35/unit
Selling price $2.25/unit

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Yes I can find the answer, but I am afraid I can not solve it for you. I can, however, guide you as to how to do it.

Break even point (units): Fixed costs/Contribution per unit
Break even Sales Value: Break even units x sales price
Break even percentage: Break even units/actual or budgeted units