Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $300,000 and its net operating income was $24,000. If fixed expenses totaled $96,000 for the year, the break-even point in unit sales was:
A) 12,000 units
B) 9,900 units
C) 15,000 units
D) 14,100 units

Question

Quizplus · Accepted Answer

Break-even point in unit sales = Fixed expenses / (Selling price per unit - Variable cost per unit)= 96,000 / (20 - Variable cost per unit)= 96,000 / (20 - 10)= 12,000 units

Moyas Corporation Sells a Single Product for $20 Per Unit