ICAEW BIP · Chapter 11 · Question 1 of 10
A company's fixed costs are £288,000 a year and the contribution per unit of its only product is £24. What is the breakeven point in units?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 12,000 units
Explanation
Breakeven point = fixed costs / contribution per unit = £288,000 / £24 = 12,000 units. At this volume total contribution exactly covers fixed costs, so profit is nil.
More Cost-volume-profit analysis and limiting factors MCQs
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