Question

If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?
Answer

30,000 units

8,710 units

12,273 units

20,000 units

Answer 1

(300000-30000)/(31-22)
= 30000 units

Answer 2

If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000?