Answer: The company's total fixed cost amount = $168000
Explanation:
Given that,
Company's break-even point = 28,000 units
product sells = $24 per unit
variable cost per unit = $18
Break even point = [tex]\frac{Fixed\ Cost}{Price\ per\ unit - Variable\ cost\ per unit}[/tex]
28000 = [tex]\frac{Fixed\ Cost}{24 - 18}[/tex]
Fixed costs = 28000 × $6
= $168000 ⇒ The company's total fixed cost amount.
