Question

Fixed costs are $600,000 and the contribution margin per unit is $150. What is the break-even...

Fixed costs are $600,000 and the contribution margin per unit is $150.

What is the break-even point?

A.

$4,000,000

B.

4,000 units

C.

$1,500,000

D.

1,500 units

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Answer #1

Option B.

Break even point= Fixed cost / contribution margin per unit

= $600,000/$150

=4000 units

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