Compute how many units must be sold to break even

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Reference no: EM131293624

Bros Inc sells a single product. their most recent income statement is given below:

sales (4000 units) 120,000 usd

less: variable expenses (68000)

contribution margin 52000

less: fixed expenses (40000)

net income 12,000 usd

Questions:

1. contribution margin per unit

2. if sales doubled to 240,000 usd, total variabl costs will equal what?

3. if sales doubled to 240,000 usd, total fixed costs will equal?

4. If 10 more units are sold, profits increase by? USD

5. compute how many units must be sold to break even?

Reference no: EM131293624

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