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    Break-even analysis: The following data pertain to last month's operations...

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    The following data pertain to last month's operations:

    Selling price $30 per unit
    Variable production cost $15 per unit
    Fixed production cost $80,000
    Variable selling & admin. expense $3 per unit
    Fixed selling & admin. expenses $40,000

    The break-even point in dollars is:
    A) $300,000. C) $200,000.
    B) $240,000. D) $160,000.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:13 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/break-even-analysis-example-problem-51833

    Solution Preview

    First of all we need to determine the total fixed costs and total variable cost per unit:
    Total fixed costs= Fixed Production Cost + Fixed Selling & Admin. Expenses
    = 80,000 +40,000
    ...

    Solution Summary

    This solution assists in a break-even analysis.

    $2.19

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