How many units that is cookbooks must be sold to break even, Accounting Basics

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How many units that is cookbooks must be sold to break even

After graduating from college, M. J. Orth started a company that produced cookbooks. After three years, Orth decided to analyze how well the company was doing. He discovered the company has fixed costs of USD 1,200,000 per year, variable cost of USD 14.40 per cookbook (on average), and a selling price of USD 26.90 per cookbook (on average).

How many units (that is, cookbooks) must be sold to break even? How many units will the company have to sell to earn USD 48,000?

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Accounting Basics: How many units that is cookbooks must be sold to break even

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