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How many units does the firm need to sell to break even

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Reference no: EM133146298

Question - Company Z has a contribution margin of R30 per unit and fixed costs that amount to R6 780. Included in that cost is R1 200 that relates to a step fixed cost (i.e., the level of the cost depends on which range the number of units falls in). The amounts payable in terms of this cost are as follows:

Units

200-250

250-300

300-350

350+

Cost

650

1,200

1,900

2,100

The firm is currently producing 280 units. How many units does the firm need to sell to break even?

Reference no: EM133146298

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