A recent income statement of Suni Corporation reported the following data:
If these data are based on the sale of 20,000 units,the break-even point would be:

Question

A recent income statement of Suni Corporation reported the following data: 
If these data are based on the sale of 20,000 units,the break-even point would be:

Quizplus · Accepted Answer

To find the break-even point, we need to determine the level of sales required to cover all costs and result in zero profit. We can use the contribution margin per unit to calculate this.

Contribution margin per unit = selling price per unit - variable cost per unit 
= ($800,000 ÷ 20,000) - ($600,000 ÷ 20,000) 
= $20

Break-even point (in units) = fixed costs ÷ contribution margin per unit 
= $200,000 ÷ $20 
= 10,000 units

Therefore, the break-even point would be 12,500 units, which is the closest option listed.

A Recent Income Statement of Suni Corporation Reported the Following