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variable cost per unit: 36. cs ratio is 25%. fixed costs: 18000
What is the bep (units) ?Please do not set me test questions and expect to be provided with a full answer.
You must have an answer in the same book in which. you found the question, so ask about. whatever it is you are not clear about and then I will explain.Since the contribution per unit is 25% of the selling price per unit, the variable costs must be 75% of the selling price.
We know that the variable cost is 36, and so the contribution per unit must be 25/75 x 36 = $12.At breakeven, the contribution equals the fixed costs and so the answer should now be obvious.
Sorry for sending you just the question. Your explanation helped a lot. Thank you !
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