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Pierce Company's break-even point is 12,000 units. Its product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost amount

Respuesta :

ayokenny2001

Answer:

$180,000

Explanation:

First, we need to determine the contribution margin per unit.

Contribution margin per unit = Price per unit - Variable cost per unit

= $25 - $10

= $15.

Break even point = Fixed cost / Contribution margin per unit

12,000 units = Fixed cost / $15

Fixed cost = 12,000 units × $15

Fixed cost = $180,000

Therefore, the company's total fixed cost amount is $180,000

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