MaxTech Company has a predicted operating income of $80,000.Their total variable expenses are $24,000 and their total fixed expenses are $36,000.They have a unit contribution margin of $10.MaxTech's break-even sales in units is:

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed expenses by the unit contribution margin. Here, $36,000 (fixed expenses) / $10 (unit contribution margin) = 3,600 units.

MaxTech Company Has a Predicted Operating Income of $80,000