Homework Answers
Break even point = 1,300 units
Selling price per unit = $50
Break even sales dollar = Break even point x Selling price per unit
= 1,300 x 50
= $65,000
Hence, at sales of $65,000, there will be no profit and no loss.
Sales beyond $65,000 will generate profit and sales less than $65,000 will result in loss.
If the break even point is 1,300 units and each unit sells for $50, then selling $65,000 will result in zero profit.
Correct option is (D)
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