Mishoe Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range. The break-even point in unit sales is closest to:
A) 0 units
B) 895 units
C) 700 units
D) 650 units

Question

Mishoe Corporation has provided the following contribution format income statement.All questions concern situations that are within the relevant range.  The break-even point in unit sales is closest to:
A) 0 units 
B) 895 units 
C) 700 units 
D) 650 units

Quizplus · Accepted Answer

11ea7761_185a_d438_81a5_6916ca8ea923_TB2580_00 Unit sales to break even = Fixed expenses ÷ Unit CM = $12,250 ÷ $17.50 per unit = 700 units

Mishoe Corporation Has Provided the Following Contribution Format Income Statement