A company produces and sells a single product whose selling

A company produces and sells a single product whose selling price is $120.00 per unit and whose variable expense is $46.20 per unit. The company\'s fixed expense is $405,900 per month. Required: Determine the monthly breakeven in unit sales. Please show your work.

Solution

Monthly breakeven in unit sales = Fixed expense / (Selling price - Variable expense) = $405,900 / ($120.00 - $46.20) = 5,500 units