A company manufactures and sells a product for $120 per unit.The company's fixed costs are $68,760,and its variable costs are $90 per unit.The company's break-even point in units is:
A)2,292.
B)573.
C)764.
D)327.

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit (selling price per unit minus variable cost per unit). Here, it is $68,760 / ($120 - $90) = 2,292 units.

A Company Manufactures and Sells a Product for $120 Per