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Fixed costs are $2700000 and the unit contribution margin is $50. What is the break-even point? a.$6750000 b.54000 units c.6750 units d.$5400000 ​

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Final answer:

To calculate the break-even point, divide the total fixed costs ($2,700,000) by the unit contribution margin ($50) which results in 54,000 units. Thus, option b. 54,000 units is the correct answer.

Step-by-step explanation:

To find the break-even point in units, we divide the total fixed costs by the unit contribution margin. Using the given figures, the fixed costs are $2,700,000 and the unit contribution margin is $50. Therefore, the break-even point in units would be calculated as follows:

Break-even point in units = Total Fixed Costs / Unit Contribution Margin

Break-even point in units = $2,700,000 / $50 = 54,000 units.

This means that the company must sell 54,000 units to cover all its fixed costs and break even. Hence, the correct answer is b. 54,000 units.

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