Ask Question
4 November, 17:48

a store has quarterly fixed costs of $50,000 and the unit cost of their product is $10. How many units must they sell per quarter at $20 per unit to break even?

+4
Answers (1)
  1. 4 November, 20:45
    0
    5,000

    Explanation:

    Data provided in the question:

    Quarterly fixed costs of the store = $50,000

    Unit cost of the product = $10

    Selling cost of per unit = $20

    Now,

    Contribution margin = Selling cost of per unit - Unit cost of the product

    = $20 - $10

    = $10

    also, we know that

    Break even units = [Fixed cost] : [Contribution margin]

    = $50,000 : $10

    = 5,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “a store has quarterly fixed costs of $50,000 and the unit cost of their product is $10. How many units must they sell per quarter at $20 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers