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Given the Following: Variable Cost as a Percentage of Sales = 60

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Essay

Given the following:
Variable cost as a percentage of sales = 60%
Unit Variable cost = $30
Fixed costs = $200,000
What is the break-even point in units?

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Definitions:

Sellers

Individuals or entities that offer goods or services to buyers in exchange for payment.

Per-Unit Tax

A tax that is charged on each unit of a good or service that is sold.

Tax Burden

The measurement of the total level of taxes imposed on individuals or businesses by a government, often expressed as a percentage of income or GDP.

Market Demand

The complete sum of a product or service that consumers in a market are willing and can purchase at various price points.

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