Answer:
700 units
Step-by-step explanation:
Break even point is the level of sales at which a business neither make profit nor loss.
First , we need to determine the price per unit ,variable cost per unit and the contribution margin per unit.
Price per unit = $50,000 / 1,000 = $50 per unit
Variable cost per unit = $32,500 / 1,000 = $32.5 per unit
Contribution margin per unit = $17,500 / 1,000 = $17.5 per unit.
Therefore, break even point is calculated as;
Break even point = Fixed cost / Contribution margin per unit.
Break even point = $12,250 / $17.5
Break even point = 700 units