How many units must be sold to break-even


Problem: Michael Vick has written a self improvement book that has the following cost characteristics:

Selling Price    $16.00 per book

Variable cost per unit:

Production                     $4.00
Selling & administrative    2.00

Fixed costs:

Production                     $88,000 per year
Selling & administrative    18,000 per year

How many units must be sold to break-even?

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Accounting Basics: How many units must be sold to break-even
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