Answer:
The amount of $600,000 sales require to be at break -even
Explanation:
The amount sales require to be at break -even is computed as:
Units × Price = Variable cost × Units + Fixed Cost
where
Units be X
Price is $50
Variable cost os $40 per unit
Fixed cost amounts to $120,000
So, putting the values above:
X × $50 = $40 × X + $120,000
$50 X = $40X + $120,0000
$50X - $40X = $120,000
$10X = $120,000
X = $120,000 / $10
X = 12,000
So, the sales amounts to as:
Sales = Units × $50
Sales = $12,000 × $50
Sales = $600,000
