Brain Teasers & Mental Math
Breakeven math: fixed costs are $200k per year, price is $50 per unit, variable cost is $30 per unit. How many units to break even?
Model answer
10,000 units.
Contribution per unit = price − variable cost = 50 − 30 = $20. Breakeven units = fixed costs / contribution = 200,000 / 20 = 10,000.
That's $500k of breakeven revenue (10,000 ×…
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