Use the information below to answer the following questions.
Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces. $\begin{array}{lr}
\text { Sales price per unit } & \$ 6.00 \
\text { Variable cost per unit } & \$ 3.00 \
\text { Fixed costs per annum } & \$ 9,000
\end{array}$
-Refer to the table above. The break-even point in units is:

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit (Sales price per unit - Variable cost per unit). Here, it is $9,000 / ($6.00 - $3.00) = 3,000 units.

Use the Information Below to Answer the Following Questions -Refer to the Table Above