If the fixed costs of a company are USD 4,000,000, the unit variable cost is USD 200 and the unit selling price is USD 400. It is asked: (a) What is the break-even point in units and in dollars? b) What is the break-even point in units if the fixed costs double? and if they decrease by half?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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Course: Costs and Budgeting

If the fixed costs of a company are USD 4,000,000, the unit variable cost is USD 200 and the unit selling price is USD 400.
It is asked:
(a) What is the break-even point in units and in dollars?
b) What is the break-even point in units if the fixed costs double? and if they decrease by half?

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