Loading...
CFA Level 1
Corporate Finance

Breakeven Point Calculation Challenge

Very Hard Measures Of Leverage Breakeven Analysis

A manufacturing company is analyzing its operational efficiency and needs to determine the breakeven point for its new product. The company incurs fixed costs of $500,000 per year and expects a selling price of $50 per unit. The variable cost per unit is estimated to be $30.

The company wants to assess how many units it needs to sell to cover all its costs. What is the breakeven point in units for this product?

Hint

Submitted3.9K
Correct2.6K
% Correct68%