Cannon Co. has a unit selling price of $500 variable cost per unit $300 and fixed costs of $240000.
Instructions
Compute the break-even point in units and in sales dollars.

Variable Cost

Expenditures that fluctuate in accordance with production or sales figures, including costs for materials and workforce.

Fixed Costs

Expenses that do not change in relation to production volume or business activity level, such as rent or salaries.

Break-Even Point

The financial level at which total revenues equal total expenses, resulting in no net profit or loss.