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    Break Even units

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    ConnectAll has fixed costs of $689,698. Selling price per unit is $156 and variable cost per unit is $22.

    a) How many units must ConnectAll sell in order to break even?
    b) How many units must ConnectAll sell in order to earn a profit of $302,036?
    c) A new employee suggests that ConnectAll sponsor a company softball team as a form of advertising. The cost to sponsor the team is $2,412. How many more units must be sold to cover this cost?

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    https://brainmass.com/business/accounting/connectall-calculate-break-even-units-261912

    Solution Preview

    a) How many units must ConnectAll sell in order to break even?

    Breakeven units = Fixed cost/unit contribution margin
    Fixed cost = 689,698
    Unit contribution margin = 156-22=$134
    Breakeven units =689,698/134 = 5,147 ...

    Solution Summary

    The solution explains how to calculate the number of units for breakeven and so earn a desired profit

    $2.19

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