If fixed costs are $600,000 and the unit contribution margin is $40, the break-even point if fixed costs are increased by $90,000 is

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Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the unit contribution margin. If fixed costs increase by $90,000, the new fixed costs are $690,000. Thus, the break-even point is $690,000 / $40 = 17,250 units.

If Fixed Costs Are $600,000 and the Unit Contribution Margin