Solved: How many units must be sold to break-even, Accounting Basics

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How many units must be sold to break-even

Problem: Michael Vick has written a self improvement book that has the following cost characteristics:

Selling Price $16.00 per book

Variable cost per unit:

Production $4.00
Selling & administrative 2.00

Fixed costs:

Production $88,000 per year
Selling & administrative 18,000 per year

How many units must be sold to break-even?

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Accounting Basics: How many units must be sold to break-even

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Accounting Basics: How many units must be sold to break-even

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