Compute the breakeven point in unit sales and dollars


UBC Company has a comparatively labor intensive process with old equipment. Fixed costs are $10,000/year and variable costs are $20/unit. Sales price is the same, $28/unit.

a. What is the contribution margin of the product?
b. Calculate the breakeven point in unit sales and dollars.

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Finance Basics: Compute the breakeven point in unit sales and dollars
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