Break$-$Even Point

Lablanc Inc. sells a product for $$118$ per unit. The variable cost is $$67$ per unit, while fixed costs are $$436,968.$

Determine $($a$)$ the break$-$even point in sales units and $($b$)$ the break$-$even point if the selling price were increased to $$123$ per unit.

a$.$ Break$-$even point in sales unitsh

$x$ units

b$.$ Break$-$even point if the selling price were increased to $$123$ per unit $x$ units

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a$.$ Unit sales price minus unit variable costs equals unit contribution margin.

b$.$ Fixed costs divided by unit contribution margin $=$ break$-$even point in units.