Subtract the unit variable cost from the selling price: $5 - $2 = $3. Divide the total fixed costs by the contribution margin per unit: $40,000 ÷ $3 = approximately 13,334 units.

Building a comprehensive cost-benefit analysis template supplies dollars-and-cents support for business decision making. Simple cost-benefit analysis involves a moderate purchase price and an ...

Thus, at $230 to produce—more than the current average cost of $200—the company would have to sell phones for at least $230 each, or it would lose money on every additional unit produced.