What Would Be the Break-Even Point in Units for a Firm

question 62

Essay

What would be the break-even point in units for a firm selling trekking poles at a selling price of $130 per pair,variable cost per set is $70,and fixed costs are $100,000?

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made at specific periods, such as monthly or annually, rather than continuously.