Tucker Corp.
Tucker Corp. has the following product information:
$$\begin{array} { l l }
\text { Sales price } & \$ 12 \text { per unit } \
\text { Contribution margin ratio } & 40 \% \
\text { Fixed costs } & \$ 45000
\end{array}$$
-What is the break-even point in units?

Question

Tucker Corp.
Tucker Corp. has the following product information:
$$\begin{array} { l l } 
\text { Sales price } & \$ 12 \text { per unit } \
\text { Contribution margin ratio } & 40 \% \
\text { Fixed costs } & \$ 45000
\end{array}$$
-What is the break-even point in units?

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit. The contribution margin per unit is the sales price multiplied by the contribution margin ratio: $12 * 0.40 = $4. Therefore, the break-even point is $45,000 / $4 = 11,250 units.

Tucker Corp -What Is the Break-Even Point in Units? A) 1500 B)

Tucker Corp -What Is the Break-Even Point in Units?
A) 1500
B)