Rosewood Chiropractic Clinic is considering a new product whose fixed costs are $1,500. Rosewood has decided it needs to charge $25 per unit and have a variable cost of $15. What is the breakeven point in quantity and in dollars?

150 units and $ $3,750

Explanation:

As per the cost volume analysis concept, the break-even point is calculated using the following formula

Break-even = fixed cost/ contribution margin per unit

Contribution margin per unit = selling price -variable cost

In this case:

fixed costs :$1500

selling price: $25

variable costs: $15

contribution margin per unit;

=$25-$15

=$10

Break-even point

= $1500/10

=150 units

break-even in dollars will the break-even units multiplied by selling price

=150 x $25

=$3,750

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.

your welcome leave a rate and a < 3