Homework Answers
Break-even sales in units
Break-even sales in units = Total fixed costs / Contribution margin ratio
= Total fixed costs / [Selling price per unit – Variable cost per unit]
= $250,000 / [$125 per unit - $73 per unit]
= $250,000 / $52 per unit
= 4,808 Units
“Hence, the Break-even sales in units will be 4,808 Units”
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