Poplar Mills Incorporated has a predicted operating income of $74,000. Its total variable expenses are $17,000 and its total fixed expenses are $13,500. It has a unit contribution margin of $5. Poplar Mills' breakeven sales in units is

Question

Quizplus · Accepted Answer

To calculate the breakeven sales in units, divide the total fixed expenses by the unit contribution margin. Here, it's $13,500 / $5 = 2700 units.

Poplar Mills Incorporated Has a Predicted Operating Income of $74,000