Weed, Inc. has a sales price per unit of $120 and variable cost per unit of $35. If total fixed costs are $12,750, what is the breakeven in units?

 

a) 246 units

      b) 150 units

      c) 106 units

d) 364 units

 

   b) 150 units

Step-by-step explanation

To calculate a break-even point based on units: Divide fixed costs by the sales price per unit minus the variable cost per unit. The fixed costs are those that do not change no matter how many units are sold.

breakeven in units=fixed cost/(sales price per unit-variable cost per unit)

=$12,750/(120-35)

=12750/85=150 units