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What are the total variable costs at the breakeven point

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Little Mermaid specializes in the production of magic carpets and genie bottles. These two products are handled by separate divisions. Due to decrease in demand for magic carpets (thanks to Uber, Life), Little Mermaid is reevaluating its sales strategy for magic carpets and to do so needs to have a few variables for their analysis. The management accounting team knows that the selling price per magic carpet is $250 and has determined that at this price, current sales for the magic carpet is $1,800,000. Fixed cost are $320,000 and a member of the team has stated that the contribution margin at breakeven is $80 per unit.

Problem 1: What are the total variable costs at the breakeven point and what are the breakeven units?

Reference no: EM132969650

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