.Given the following information extracted from the income statement of Widget Company ( Widget Company has no depreciation or amortization expenses),

The break-even point for Widget Company is:
A) 64,286 units
B) 107,135 units
C) 117,857 units
D) 500,000 units

Question

.Given the following information extracted from the income statement of Widget Company ( Widget Company has no depreciation or amortization expenses),
  
The break-even point for Widget Company is: 
A) 64,286 units 
B) 107,135 units 
C) 117,857 units 
D) 500,000 units

Quizplus · Accepted Answer

Contribution margin: $7 per unit.Contribution margin percentage=7/15=0.4667
Fixed costs are $750,000 BE is $750,000/.4667 = $1,607,028 or 107,135 units

Given the Following Information Extracted from the Income Statement of Widget