Expanse Co. is considering the production and sale of a new product line with the following sales and cost data: unit sales price $125; unit variable costs $50; and total fixed costs of $150,000. Calculate the break-even point in units and in dollar sales.
What will be an ideal response?
Break-even point in units = $150,000/($125 — $50) = 2,000 units
Break-even point in sales dollars = 2,000 units * $125 = $250,000
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