How many units does the firm need to sell to reach the cash


Calloway Cab Company computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $470,000, but 15 percent of this value is represented by amortization. Its contribution margin (price minus variable cost) for each unit sold is $4.30. How many units does the firm need to sell to reach the cash break-even point?

Solution Preview :

Prepared by a verified Expert
Business Economics: How many units does the firm need to sell to reach the cash
Reference No:- TGS02465658

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)