Sky High sells helicopters. During the current year, 130 helicopters were sold resulting in $820,000 of sales revenue, $250,000 of variable costs, and $345,000 of fixed costs. Breakeven point in units is ________.
A) 95 units
B) 58 units
C) 79 units
D) 55 units

Question

Quizplus · Accepted Answer

Contribution margin per unit = ($820,000 - $250,000) / 130 = $570,000 / 130 = $4,384.62 per unit.
Breakeven point = $345,000 / $4,384.62 = 79 units

Sky High Sells Helicopters