What is the break even in units?
Bottle, Label and Production (direct material and labor) = $9.12 per 12 oz. can
Advertising & promotion (fixed) = $218,000
Company Overhead (fixed) = $354,000
Formula I'm using:
Breakeven in units (BEU)= total fixed cost / (unit price – unit variable costs)
BEU= ($218,00 + $354,000) / (($9.12 / 12) – unit variable costs)
(I'm stuck on what to put in for unit variable costs.