If fixed costs are $400,000 and the unit contribution margin is $20, the amount of units that must be sold in order to have a zero profit is
A)25,000 units
B)10,000 units
C)400,000 units
D)20,000 units

Question

Quizplus · Accepted Answer

To find the number of units needed to be sold to have a zero profit, divide the total fixed costs by the unit contribution margin. $400,000 / $20 = 20,000 units.

If Fixed Costs Are $400,000 and the Unit Contribution Margin