Valdez 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:

Question

Valdez 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:

Quizplus · Accepted Answer

11ea7761_186d_4a14_81a5_ffd20d667240_TB2580_00 Unit sales to break even = Fixed expenses ÷ Unit CM = $54,000 ÷ $10 per unit = 5,400 units

Valdez Corporation Has Provided the Following Contribution Format Income Statement