Kayla wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $25 per unit, her fixed costs are $7,000, and the variable costs per unit are $15. What is her break-even point?

Break-even point in units= 700 units

Explanation:

Giving the following information:

She indicates to you that her selling price is $25 per unit, her fixed costs are $7,000, and the variable costs per unit are $15.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 7,000/ (25 - 15)

Break-even point in units= 700 units

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