[Jtchnn70]

How do you find the breakeven sales in dollars? The given selling price per pound is $20, Variable costs are $12 per pound, and total fixed costs $ 6000.

[adityah]

Selling Price is $ 20 per unit. Variable cost $ 12 per unit. Therefore, contribution (i.e Sales price less variable cost) is $ 8 per unit. Now, divide fixed cost of $ 6000 by contribution of $ 8 per unit. You get 750. It means, you need to sell 750 units to break even. In other words, revenue from sales must be $ 15000 (750 units x $ 20 per unit).

Now let us understand the concept. Every unit gives profit of $ 8 (20-12)before fixed cost. You need to recover fixed cost of $ 6000. If one unit gives $ 8, how many units will be equal to $ 6000 ? The answer is 6000/8=750.

[Jtchnn70]

You're right. I agree with your answer.