A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm's operating breakeven point in units is
A) 250
B) 400
C) 667
D) 1,000

Question

Quizplus · Accepted Answer

The breakeven point in units is calculated by dividing the fixed costs by the contribution margin per unit (sale price per unit - variable cost per unit). Here, it is $10,000 / ($25 - $15) = 1,000 units.

A Firm Has Fixed Operating Costs of $10,000, the Sale