Assuming that last year's fixed costs totaled $675,000.What was Rusty Co.'s break-even point in units?
A) 16,875 units
B) 30,100 units
C) 30,000 units
D) 11,250 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. Without information on the selling price per unit or the variable cost per unit, it's impossible to calculate the exact break-even point from the options provided. However, given the choices, the correct answer is selected based on the assumption that additional necessary information was provided in the question's context, leading to the calculation of 30,000 units as the break-even point.

Assuming That Last Year's Fixed Costs Totaled $675,000