Price beats cost, margin's song rings, fixed waits in shadows, a dance it craves. Eight hundred whispers, break-even's kiss, where profit paints the dawn, and loss takes miss.
The correct answer is d. 800.
Here's how to calculate Dartmouth's break-even point:
Calculate the contribution margin per unit:
Contribution Margin = Price per unit - Variable Cost per unit
Contribution Margin = $12 - $3
Contribution Margin = $9
Calculate the break-even point in units:
Break-even Point (units) = Fixed Costs / Contribution Margin per unit
Break-even Point (units) = $7,200 / $9
Break-even Point (units) = 800
Therefore, Dartmouth needs to sell 800 units to cover its total fixed costs and reach the break-even point where profit is zero. Options a, b, and c are incorrect calculations based on various mistakes like misidentifying contribution margin or miscalculated division. Option e is not true as we have enough information to calculate the break-even point.