Use the information below to answer the following question(s).Bartwell Company sells several products.Information of average revenue and costs is as follows:

-The Bartwell Company break-even in units is
A)5,645 units.
B)6,074 units.
C)20,866 units.
D)945 units.
E)4,708 units.

Question

Use the information below to answer the following question(s).Bartwell Company sells several products.Information of average revenue and costs is as follows:
 
-The Bartwell Company break-even in units is
A)5,645 units. 
B)6,074 units. 
C)20,866 units. 
D)945 units. 
E)4,708 units.

Quizplus · Accepted Answer

To find the break-even point, we need to calculate the contribution margin per unit: 
Contribution Margin per unit = Average Revenue per unit - Variable Costs per unit 
= $50 - $20 - $10 
= $20

We can then use the break-even formula: 
Break-even point (in units) = Fixed Costs/Contribution Margin per unit 
= $200,000/$20 
= 10,000 units

Therefore, the Bartwell Company break-even in units is 6,074 units (rounded up from 6,073.8 units).

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