Question

Data concerning Odum Corporation's single product appear below:

Selling price per unit $210.00
Variable expense per unit $92.40
Fixed Expense per month $130,536

The break-even in monthly unit sales is closest to:
A. 1,413 units
B. 1,048 units
C. 1,110 units
D. 622 units

Answer 1

The correct answer is C.

Step-by-step explanation:

Giving the following information:

Selling price per unit $210.00

Variable expense per unit $92.40

Fixed Expense per month $130,536

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 130,536/ (210 - 92.4)

Break-even point in units= 1,110 units