Company XYZ produces and sells wireless earphones. The selling price per unit is $ 5 and the total fixed costs are $ 20,000. Assuming a variable cost ratio of 60%, what is the breakeven point in ($) value? (round figures to the nearest number) ?

Company XYZ produces and sells wireless earphones. The selling price per unit is $ 5 and the total fixed costs are $ 20,000. Assuming a variable cost ratio of 60%, what is the breakeven point in ($) value? (round figures to the nearest number) ?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

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Question

16. Company XYZ produces and sells wireless earphones. The selling price per unit is $ 5 and the total fixed costs are $ 20,000. Assuming a variable cost ratio of 60%, what is the breakeven point in ($) value? (round figures to the nearest number) ?

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