The following is last month's contribution format income statement:
What is the company's break-even sales in units?

Name: The following is last month's contribution format income statement: What is the company's break-even sales in units?
Brand: Quizplus
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Question

The following is last month's contribution format income statement: 
What is the company's break-even sales in units?

Quizplus · Accepted Answer

Break-even point in units = Fixed expenses / (Price per unit - Variable expenses per unit)
Fixed expenses = $80,000
Price per unit = $12
Variable expenses per unit = $6
Break-even point in units = $80,000 / ($12 - $6) = 6,000 units. Therefore, the answer is C.

The Following Is Last Month's Contribution Format Income Statement