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    catallissa's Avatar
    catallissa Posts: 1, Reputation: 1
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    #1

    May 22, 2008, 11:07 AM
    Cost Accounting - How to compute 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.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    May 22, 2008, 05:11 PM
    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.
    bahan's Avatar
    bahan Posts: 5, Reputation: 1
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    #3

    Jun 19, 2008, 05:01 AM
    Fantastic Question

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