A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit. The company's break-even point in units is:
A) 2,292.
B) 573.
C) 764.
D) 327.
E) 840.

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit (selling price per unit - variable cost per unit). Here, it is $68,760 / ($120 - $90) = 2,292 units.

A Company Manufactures and Sells a Product for $120 Per