Martin Worldwide sells a single product with a contribution margin of $12 per unit and fixed costs of $24,000.How much is Martin's break-even point?

Question

Quizplus · Accepted Answer

The break-even point formula is:
Break-even point in units = Fixed costs / Contribution margin per unit

Substituting the given values, we get:
Break-even point in units = $24,000 / $12 per unit = 2,000 units

Therefore, the best choice is D) 2,000 units as it gives us the correct break-even point for Martin Worldwide.

Martin Worldwide Sells a Single Product with a Contribution Margin