Answer:
Break-even point in units= 300,000 units
Step-by-step explanation:
Giving the following information:
Desired profit= $100,000
Selling price per unit= $9
Unit variable cost= $8
The total fixed costs are $200,000
To calculate the number of units to be sold, we need to use the break-even point in units formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (200,000 + 100,000) / (9 - 8)
Break-even point in units= 300,000 units