Minist corporation sells a single product for $15 per unit. last year, the company's sales revenue was $225,000 and its net operating income was $18,000. if fixed expenses totaled $72,000 for the year, the break-even point in unit sales was:

12000 units

Explanation:

Given:

Selling price of a single product = $ 15

Sales revenue of the company = $ 225,000

Net operating income = $ 18,000

Fixed total expenses = $ 72,000

Now,

The number of units sold  = $ 225,000 / 15 = 15000

Operating income = Sales – variable cost – fixed cost

on substituting the value,

$ 18,000 = $ 225,000 – $ 72,000 – Variable cost

or

Variable cost = $ 225,000-72,000-18,000  = $ 135,000

Now, the variable cost for the single unit = $ 135,000 / 15000 = $ 9

thus,

Break even point = Total fixed cost/( Selling price – variable cost)per unit

or

Break even point = $ 72000 / ( $ 15 – $ 9)

or

Break even point = 12000 units

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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