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Someone please help me with this one, I don't want to get it wrong!
The Oliver Company plans to market a new dish washing detergent. The selling price will be $4
per container. Variable costs are estimated to be 46% of the selling price. Fixed costs are
estimated to be $6,115. What is the break-even point? That is, how many containers of the
detergent the company must sell in order to end up with no loss and no profit in its operations?
(Round your final answer to the nearest whole number).

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Parrain

Answer: 2,831 containers

Step-by-step explanation:

To find the breakeven point, use the following formula:

= Fixed cost / Contribution margin

Fixed cost = $6,115

Contribution margin = Selling price - Variable cost

= 4 - (4 * 46%)

= $2.16

Breakeven point = 6,115/2.16

= 2,831 containers

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