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Ivanhoe, Inc, has a unit selling price of $580, variable cost per unit of $340, and total fixed costs of $264,000. Compute the break-even salesunits and sales dollars. Break-even point (in units) units Break-even point (in dollar)

 Aug 19, 2023
 #1
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Let x be the number of  units 

 

The break-even  point is where

 

Break-even Revenue = Break-even Costs

 

580x  = 340x + 264000

 

(580 - 340)x = 264000

 

240x = 264000

 

x=  264000 / 240  =    1100 = break-even  sales  units

 

Break-even point in  dollars is   580 (1100) = $638,000

 

cool cool cool

 Aug 19, 2023
edited by CPhill  Aug 19, 2023

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