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Your break-even point is 3,000 units. You make $5 on each unit; that is, your price minus variable cost is $5. What are your fixed costs? Use the formula: Break-even Point = Fixed Costs / (Price - Variable Cost)

Respuesta :

The fixed cost is $15000

Explanation:

Given:

Break even point = 3000 units

Each unit = $5 → (Price - variable cost = $5)

Fixed cost, x = ?

We know,

Break even point = fixed cost / (Price - Variable cost)

On substituting the values:

[tex]3000 = \frac{x}{5} \\\\x = 15000[/tex]

Thus, the fixed cost is $15000

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