Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50. What is the break even point? How many units must be sold to make a profit of $500.? How many units must be sold to average $.0.25 profit per unit? .50 per unit? $1.50 profit per unit?© BrainMass Inc. brainmass.com October 10, 2019, 12:08 am ad1c9bdddf
Breakeven Point=Fixed Costs/(Price per unit- Variable Cost per unit)=900/(5.5-4.5)=900 units
If the desired profit is $500
Units needed to be sold=(Fixed Costs+ desired profit)/(Price per unit- Variable Cost per unit)
The solution describes the steps to find out breakeven unit sales and sales necessary to meet a desired profit level.