Fixed operating cost 500 thousands dollars its variable costs are 3 dollars per unit and product sales price is 4 dollars what is the company break even point?

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Answer

1101343

2026-07-25 07:20

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Break even point = Fixed cost / contribution margin ratio

Contribution margin ratio = (Sales price - variable cost ) sales price

Contribution margin ratio = (4 - 3 ) / 4 = 25%

Break even point = 500,000 / .25

Break even point = 2,000,000

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