A company has total fixed costs of $120,000.Its variable cost per unit is $2.00 and its price per unit is $3.50.The break-even point in units is
A)60,000.
B)80,000.
C)34,286.
D)21,818.
E)This cannot be determined with the information provided.

Question

Quizplus · Accepted Answer

The BEP,in units,can be found by dividing total fixed costs (TFC)by the fixed-cost (FC)contribution per unit.The fixed-cost (FC)contribution per unit is the assumed selling price per unit minus the variable cost per unit.

A Company Has Total Fixed Costs of $120,000