Jaffre Enterprises distributes a single product whose selling price is $27 per unit and whose variable expense is $15 per unit. The company’s fixed expense is $15,000 per month.

Jaffre Enterprises distributes a single product whose selling price is $27 per unit and whose variable expense is $15 per unit. The company’s fixed expense is $15,000 per month.

2. Calculate the company’s break-even point in unit sales.
 

2.

Profit	=	Unit CM × Q − Fixed expenses
	=	$12 × Q − $15,000
	=	$12 × 1,250 − $15,000
	=	$15,000 − $15,000
	=	$0

 

Thanks