What Is the Break-Even Volume Given a Fixed Cost of $100,000

question 96

Essay

What is the break-even volume given a fixed cost of $100,000, a variable cost per unit of $30, and a selling price of $35?

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Definitions:

Accounts Payable

A liability account tracking money owed by a business to suppliers or creditors for goods and services received.

Revenue Account

An account that records sales, services, or other income earned by a business.

Asset Account

Accounts on a balance sheet that represent the resources owned by a company, which are expected to provide future economic benefits.

Liabilities

Financial obligations of a business, including debts and other amounts owed to creditors.