Question-1 Fixed cost is $ 3000, Selling price per unit is $5 and variable cost per unit is $2. Calculate the break-even-point? Solution: The question is asking you to calculate the level of sales that the business need to make in order not to make neither a loss or profit. So according to the formula the Break even-point is equal a fixed cost divided by(selling price per unit less variable cost per unit). Let calculate that The Break-even point is $3000 divide by($5 less $3) that equal 1500. Therefore the Break-even point is 1500, that mean that the business need to sell 1500 units to break even.{Play}

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