CIMA BA2 · Chapter 10 · Question 2 of 12
A product has a selling price of $24 per unit and variable costs of $15 per unit. Fixed costs are $270,000 per period. What is the breakeven point in units?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 30,000 units
Explanation
Contribution per unit = $24 - $15 = $9. Breakeven point = fixed costs / contribution per unit = $270,000 / $9 = 30,000 units.
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