QuestionMay 29, 2025

Required information [The following information applies to the questions displayed below.] Karlik Enterprises distributes a single product whose selling price is 28 per unit and whose variable expense is 20 per unit. The company's monthly fixed expense is 24,000 2. Calculate the company's break -even point in unit sales. Unit sales to break even square units

Required information [The following information applies to the questions displayed below.] Karlik Enterprises distributes a single product whose selling price is 28 per unit and whose variable expense is 20 per unit. The company's monthly fixed expense is 24,000 2. Calculate the company's break -even point in unit sales. Unit sales to break even square units
Required information [The following information applies to the questions displayed below.] Karlik Enterprises distributes a single product whose selling price is 28 per unit and whose variable expense is 20 per unit. The company's monthly fixed expense is 24,000 2. Calculate the company's break -even point in unit sales. Unit sales to break even square units

Solution
4.3(249 votes)

Answer

3000 units Explanation 1. Identify the Contribution Margin per Unit Contribution margin per unit is calculated as selling price minus variable expense. So, 28 - 20 = 8. 2. Calculate Break-even Point in Units Use the formula **Break-even point (units) = \frac{\text{Fixed Expenses}}{\text{Contribution Margin per Unit}}**. Substitute the values: \frac{24000}{8}.

Explanation

1. Identify the Contribution Margin per Unit<br /> Contribution margin per unit is calculated as selling price minus variable expense. So, $28 - 20 = 8$.<br /><br />2. Calculate Break-even Point in Units<br /> Use the formula **Break-even point (units) = \frac{\text{Fixed Expenses}}{\text{Contribution Margin per Unit}}**. Substitute the values: $\frac{24000}{8}$.
Click to rate:

Similar Questions