Break-evenmediumFree question
Break-even Numerical Reasoning Question
A product sells for £40, variable cost £15, fixed costs £7,000. Units to break even?
Show worked solution
Contribution per unit = price − variable cost. Break-even units = fixed costs ÷ contribution. The correct answer is 280. Traps to avoid: 467 comes from the "divided by variable" error; 175 comes from the "divided by price" error; 127 comes from the "price plus variable" error; 420 comes from the "wrong contribution" error.
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