What is the breakeven point in unit sales


Problem: White Walter sells washing machines and dishwashers and is considering whether to expand its operation interstate. All products have identical costs and selling prices. The following data is supplied: Selling price $600 per unit Variable costs per product: Purchase costs $390 Sales commissions $30 Total annual variable costs $420 Annual fixed costs: Rent $60,000 Salaries $200,000 Advertising $80,000 Other $20,000 Total annual fixed costs $360,000 The breakeven point in unit sales is: Select one: a. 1,000 units b. 2,000 units c. 1,714 units d. 2,100 units

 

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Accounting Basics: What is the breakeven point in unit sales
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