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How many units must be sold in a year to break-even?

A product’s selling price is $18 per unit.  Each unit sold contribute $6 to the recovery of Fixed cost and profit.

Fixed cost of operation per year is : $84,000.

 

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2015/02/14
Lesley Lanag CMA CPA
by Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

BEP (units) = Fixed cost / CM per unit

14,000

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

BEP =84000/6 

answer equal =14000 units 

Ayman Esa Mustafa Farrag
by Ayman Esa Mustafa Farrag , مدير مالي , شركة الصفوف

14000 unit ,,,,,,,,,,,,,,,,,,

Akhter Mehmood
by Akhter Mehmood , Station Coordinator at Radio Dhamaal fm94 Sialkot , Global Entertainment Pvt Ltd

84000/6=14000 Units to break even level

Zidan Hanna
by Zidan Hanna , Account Manager , FAB Arabia JLT

Break-even point is achieved when the profit is equal to the complex fixed cost

 

84,000 /6 =14000 Units

Khurram Shaukat Memon
by Khurram Shaukat Memon , Academic Research Writer , Freelance Academic Research Writer

14000 units should be sold in order to break-even.

Sara Naeem
by Sara Naeem , Trainee Finance officer , Wah Brass Mill

agreed with all answers..sorry for late reply.

Deleted user
by Deleted user

........................................agree with answers

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

 <<<<>>>>>>>>>>>>14000 units

fadil hoory
by fadil hoory , محاسب , شركة مقاولات بالسعودية

84000 ÷6 =14000 equivalent unit

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Agree with the answers posted so far.

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