Break-Even Point Nicolas Inc. sells a product for $59 per unit. The variable cost is $30 per unit, while fixed costs are $171,564.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $64
per unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were increased to $64 per unit
units

The right answer is:

(a) 5916 units

(b) 5046 units

Explanation:

Given:

Sales,

= $59

Variable cost,

= $30

Fixed cost,

= $171,564

Increased sale,

= $64

Now,

(a)

Contribution margin will be:

=

=

= ($)

hence,

Breakeven will be:

=

=

=

(b)

Contribution margin will be:

=

=

= ($)

hence,

Breakeven will be:

=

=

=

you can put this in your 11 sentence summary

" most of the money would be invested in innovation, economic convergence."