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Reynold's Grocery has fixed costs of $350,000, the unit selling price is $29, and the unit variable costs are $20. What is the break-even sales (units) if the variable costs are decreased by $4?

Respuesta :

Answer:

26,923

Explanation:

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

variable cost per unit = $20 - $4 = $16

$350,000 / ($29 - $16) = 26,923

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