SBD Phone Company sells its cordless phone for 90 per unit F

SBD Phone Company sells its cordless phone for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per unit.

Solution

Selling Price of Cordless Phone = 90

(-) Variable cost                        = 36

Contribution Margin                   = 54 per unit

Break even point in Units = total fixed cost / contribution margin per unit

                                         162000/ 54 = 3000 units

break even point is 3000 units