Respuesta :
If fixed expenses totaled $108,000 for the year, the break-even point in unit sales was:21, 600 Units
Explanation:
The Break Even Point in units is 21,600units.
We follow the below steps in order to arrive at the answer:
First we find Total variable costs of Moyas Corporation
Net operating income=Sales-variable cost-Fixed cost
47000=310000-variable cost-108000
Variable cost=310000-108000-47000
Variable Cost=155000
Next we find the number of units sold
No:of unit sold= Total Sales/Selling price per unit
No:of unit sold =310000/10=31,000
Then we find Variable Cost per unit
Variable cost per unit=Total Variable cost/Number of unit sold
Variable cost per unit=155000/31000=5
We calculate Contribution Margin per unit
Contribution Margin per unit =Selling price per unit-Variable cost per unit
Contribution Margin per unit = 10-5= 5
Finally we calculate Break Even Point (BEP) in units as:
BEP=Fixed cost per unit/Contribution Margin per unit
BEP=108,000/5=21600 Units
The break-even point in unit sales is 21,600 units
Calculation of the break-even point in unit sales:
But before that we have to determine the variable expense per unit.
= Sales-fixed expenses-net operating expenses/units
=$310,000-$108,000-$47,000/31,000
=$155,000/31,000
=$5 per unit
Now the break-even point in unit sales is
= Fixed costs/Selling price-variable cost per unit
=$108,000/$10-$5
=$108,000/$5
= 21,600 units
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