Ferris Inc. has a unit selling price of $500 variable cost per unit of $300 and fixed costs of $260000.
Instructions
Compute the break-even point in units and in sales dollars.

Variable Cost

Costs that change in proportion to the level of activity or volume of production.

Break-Even Point

The level of production or sales at which total costs equal total revenue, resulting in no net profit or loss.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of production or sales volume.