Data concerning Nazario Corporation's single product appear below: The break-even in monthly unit sales is closest to:
A)819
B)2,214
C)1,300
D)1,444

Question

Data concerning Nazario Corporation's single product appear below:  The break-even in monthly unit sales is closest to:
A)819 
B)2,214 
C)1,300 
D)1,444

Quizplus · Accepted Answer

The break-even point can be calculated as:

Break-even point (units) = Fixed costs / (Price per unit - Variable cost per unit)

Given data:
Fixed costs = $140,000
Price per unit = $25
Variable cost per unit = $12

Break-even point (units) = $140,000 / ($25 - $12) = 1,300 units

Therefore, the closest option is C) 1,300.

Data Concerning Nazario Corporation's Single Product Appear Below: the Break-Even