The recipe makes enough stew for 6 people, and the ingredients cost $9.75. how much would it cost to serve 24 people? use the rate table to solve the proportion.

In the second ratio, the number of people is the denominator. It should be the numerator to match the first ratio.

3,636 units

Explanation:

The computation of break-even point in units is shown below:-

Break-even point in units = Fixed cost decreased ÷ Contribution margin per unit

= ($120,000) ÷ ($48 - $15)

= $120,000 ÷ $33

= 3,636.36 units

or

= 3,636 units

Therefore for computing the break-even point in units we simply applied the above formula and ignore all other values as they are not relevant.