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)
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
