Techno Robots produces a functioning toy robot. At a production and sales level of 10,000 robots, the firm has
the following information:
Selling price per unit = $15
Variable costs per unit = $8
EBIT = $17,500
What is the break-even point in units for the firm?
QBE
Sales = $15 × 10,000 robots = $150,000
Variable Costs = $8 × 10,000 robots = $80,000
EBIT = $150,000 - $80,000 - fixed costs = $17,500
Therefore, fixed costs = $52,500
Break-even = $52,500/($15 - $
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