Question

8. Calculate break-even sales (in units) when fixed cost is $216,000, unit selling price is $120, and unit variable cost is $60. a. 4,100 units b. 2,300 units c. 3,400 units d. 3,600 units

Answer 1

Answer: d. 3,600 units

Step-by-step explanation:

Breakeven point = Fixed Costs / Contribution Margin

Contribution margin = Selling price - Variable cost

= 120 - 60

= $60

Breakeven point = 216,000/60

= 3,600 units