Bunch of Books, a producer of children's books, has provided the following information: $$\begin{array} { l r }
\text { Selling price per unit } & \$ 6.60 \
\text { Contribution margin per unit } & \$ 3.00 \
\text { Total fixed costs } & \$ 46,200
\end{array}$$ What is the break-even point in books?

Question

Bunch of Books, a producer of children's books, has provided the following information: $$\begin{array} { l r } 
\text { Selling price per unit } & \$ 6.60 \
\text { Contribution margin per unit } & \$ 3.00 \
\text { Total fixed costs } & \$ 46,200
\end{array}$$ What is the break-even point in books?

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit: $46,200 / $3.00 = 15,400$ books.

Bunch of Books, a Producer of Children's Books, Has Provided