Hess, Inc. sells a product with a contribution margin of $12 per unit, fixed costs of $74,400, and sales for the current year of $100,000. How much is Hess's break-even point?
A) 4,600 units
B) $25,600
C) 6,200 units
D) 2,133 units

Question

Quizplus · Accepted Answer

Break-even point (in units) = fixed costs / contribution margin per unit

= 74,400 / 12

= 6,200 units

Therefore, option C is the correct answer.

Hess, Inc Sells a Product with a Contribution Margin of $12