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The price per unit is $120 for JMO Manufacturing Company, its variable cost per unit is $80, and its fixed costs are $4,000. What is the breakeven point in units using the contribution margin method? A.
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The price per unit is $120 for JMO Manufacturing Company, its variable cost per unit is $80, and its fixed costs are $4,000. What is the breakeven point in units using the contribution margin method? A. 40 B. 80 C. 100 D. 60

User OhBeWise
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1 Answer

6 votes

Answer:

100

Step-by-step explanation:

So you will need to find the point where revenue equals costs

our revenue equation is 120x

Our cost equation is 80x+4000

80x+4000=120x

4000=40x

100 = x

Breakeven is at 100 units.

User Suyash Gaur
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4.5k points
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