# Break-even point Elrod Inc. sells a product for $75 per unit. The variable cost is$45 per unit,... 1 answer below »

Break-even point

Elrod Inc. sells a product for $75 per unit. The variable cost is$45 per unit, while fixed costs are $48,000. Determine (a) the break-even point in sales units and (b) the break- even point if the selling price were increased to$95 per unit.

Dipesh S

Solution:

Selling price per unit = $75 Variable cost per unit =$45

Contribution margin per unit == 75 – 45 = \$30

Fixed...
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