Cvp analysis?

Question

Compute the selling price if variable costs are $12 per unit

Breakeven point is revenues of $1,000,000.00

Fixed costs are $400,000.00

Answer 1

BE = Q*VC + FC

1,000,000 = Q*12 + 400,000 ==> 12Q = 600,000

Therefore Q = 50,000

Also, BE = Q*SP

1,000,000 = 50,000*SP ===> SP = $20