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 |
Option B.
Break even point= Fixed cost / contribution margin per unit
= $600,000/$150
=4000 units
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