Last year,Perry Company reported profits of $4,200.Its variable expenses totalled $66,000 or $6 per unit.The unit contribution margin was $3.00.The break-even point in units for Perry Company is:

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the unit contribution margin. In this case, the fixed costs are $4,200 and the unit contribution margin is $3.00. Therefore, the break-even point in units is 4,200 / 3.00 = 1,400 units.

Last Year,Perry Company Reported Profits of $4,200