Pierce Company's break-even point is 12,000 units. Its product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost amount

$180,000

Explanation:

First, we need to determine the contribution margin per unit.

Contribution margin per unit = Price per unit - Variable cost per unit

= $25 - $10

= $15.

Break even point = Fixed cost / Contribution margin per unit

12,000 units = Fixed cost / $15

Fixed cost = 12,000 units × $15

Fixed cost = $180,000

Therefore, the company's total fixed cost amount is $180,000

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.

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