Bethany H: How do I calculate selling price per unit to break even when the number of units sold is given ?
I believe I will sell 50 widgets. Variable cost is $ 5. Fixed cost is $ 200. What would the selling price need to be in order to break even and sell 50?
Answers and Views:
Answer by puppy
Cost:
Variable –> 50 * 5 = $ 250
Fixed –> $ 200
Therefore, total costs: $ 450
To sell 50 widgets at break-even price = $ 450 / 50 = $ 9
Therefore, your break-even selling price is $ 9 per unit.
Answer by eagleboyIf you sell 50 units – your variable costs are 50 x 5 = 250 + fixed costs of 200 = 450 of total costs. We are selling 50 units so 450 / 50 = 9.00 per unit selling price
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