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m/ilmitakeAssignment/takeAssignmentMain.do?invoker= assignments& takeAssignmentSessionLoca. Break-Even Point Bigelow Inc. sells a product for $1,200 per unit. The variable cost is $816 per unit, while fixed costs are $3,120,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $1,232 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $1,232 per unit units PreviouS

Solution

==>> Break - even in sales unit = fixed cost / contribution per unit

Contribution = sales - variable cost

A:- fixed cost = 3120,000

Contribution = 1200 - 816 = 384

Break even point = 3120,000 / 384

= 8,125 units

B: if selling price are $ 1,232

Contribution = 1,232 - 816

= 416

Break even = 3120,000 / 416

= 7,500 units