Saarland Abitur Business Administration Practice Questions - Saarland Abitur Business Administration (BWL) Exam

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A company has fixed costs of €50,000, sells its product at €40 per unit, and has variable costs of €25 per unit. What is the break-even point in units?

Approximately 3,333 units, since Break-Even = 50,000 / (40 − 25) = 50,000 / 15 ≈ 3,333 2,000 units, incorrectly dividing fixed costs by the selling price alone 1,250 units, incorrectly dividing fixed costs by the variable cost alone 5,000 units, incorrectly dividing fixed costs by 10 instead of the correct contribution margin

Correct Answer:

Approximately 3,333 units, since Break-Even = 50,000 / (40 − 25) = 50,000 / 15 ≈ 3,333

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