If total fixed costs are $179,000, the contribution margin per unit is $10.00, and targeted operating income is $22,000, how many units must be sold to breakeven?

Question

Quizplus · Accepted Answer

The breakeven point in units can be calculated using the following formula:

Breakeven Point (in units) = Total Fixed Costs / Contribution Margin per Unit

Plugging in the given values, we get:

Breakeven Point (in units) = $179,000 / $10 = 17,900 units

Since the question only asks for the breakeven point, choice (C) is the correct answer. The other choices are either too high or too low, indicating a calculation error.

If Total Fixed Costs Are $179,000, the Contribution Margin Per