# Hess,Inc.Sells a single product with a contribution margin of \$12 per unit, fixed costs of \$74,400, and sales for the current year of \$100,00. How much is Hess's Break even point?

## Ah, let me do some calculations and put on my math hat.

The formula for calculating the break-even point is as follows:

Break-Even Point = Fixed Costs / Contribution Margin

So, in this case:

Break-Even Point = \$74,400 / \$12 = 6,200 units

Hess's break-even point is 6,200 units. That's a lot of units, but hey, they gotta make some money, right?

## To calculate the break-even point for Hess, Inc., we need to determine the number of units they need to sell in order to cover their fixed costs.

The contribution margin is the difference between the selling price and the variable costs per unit. In this case, the contribution margin is \$12 per unit.

The fixed costs for Hess, Inc. are given as \$74,400.

We can calculate the break-even point using the formula:

Break-even point (in units) = Fixed Costs / Contribution Margin

Substituting the given values into the formula:

Break-even point (in units) = \$74,400 / \$12 = 6,200 units

Therefore, Hess, Inc.'s break-even point is 6,200 units.

## To calculate the break-even point for Hess, we need to use the formula:

Break-even point = Fixed Costs / Contribution Margin per unit

First, let's calculate the contribution margin per unit for Hess. The contribution margin per unit is the selling price per unit minus the variable cost per unit. However, since the information provided does not contain data about variable costs, we can assume that the contribution margin per unit is equal to the contribution margin,

Contribution Margin = \$12 per unit

Next, we'll calculate the break-even point:

Break-even point = Fixed Costs / Contribution Margin per unit
= \$74,400 / \$12 per unit
= 6,200 units

Therefore, Hess's break-even point is 6,200 units.