Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in units?
A) 40,000 units
B) 12,000 units
C) 35,000 units
D) 28,000 units

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit. Assuming the contribution margin per unit is $24 (from $960,000 / 40,000 units), the break-even point is 40,000 units.

Assuming That Last Year's Fixed Costs Totaled $960,000, What Was