fitzgerald inc.manufactures and sells a single product for $20 per unit. if variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be:

The break-even point refers to the point for which total costs and total revenue are equal, implying that your small business has no loss or gain. In these other words, you've reached the point where the costs of production equal the revenues for a product.

Here given:

Selling price = $20

The variable expenses = 60%

= 60% of $20

= $12

Given fixed cost = $9,600

Contribution margin is calculated as follows:

contribution margin = (selling price - variable expenses) / selling price.

∴ contribution margin = (20 - 12) / 12

= 0.66

To Computation of break-even sales:

Break-even sales = Fixed cost / contribution margin .

Break-even sales = $9,600 / 0.6

Break-even sales = $16,000

To learn more about break - even sales refer to :

https://brainly.com/question/24233845

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