# Break Even units

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?

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