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If the following information is available, could you please help in calculating the breakeven volume.
Selling price -> $30
Variable cost of manufacturing per unit -> $14
Directly attributable F.Cost -> $28,800
Delivery cost per unit -> $0.20
Buy in cost -> $15.60As i’ve learnt so far, to find the BEP (B.Ev Sales volume), the formula FC/(cn p.u) applies.
For which i get 1800 units.
Apparently, the correct answer is 18,000units.Could someone please advise?
Thanks in advance.
There must be more in the question than you have typed (unless it has been missed out by accident in your book), otherwise they would not have given the buy-in cost.
If this was a past exam question or a question in the BPP Revision Kit, then say which question and I will check the wording myself.
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