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

2 answers

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