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Derek Thompson looks at the following profitability report of his only product produced in the Mesa plant: Product X Sales Price 70 Variable Costs 35

Derek Thompson looks at the following profitability report of his only product produced in the Mesa plant:

Product X
Sales Price 70
Variable Costs 35
Overhead allocation 12


The Mesa plant currently produces 11,000 units of Product X but its maximum capacity is 17,000 units. Assume that all of the annual overhead costs of 32,000 is fixed. What is the margin (profit) per unit of Product X that is used to calculate the break-even point?

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