The Olson Company has a predicted operating income of $100,000.Their variable expenses are $36,000 and their total fixed expenses have almost doubled from $24,000 to $40,000.Their unit contribution margin is $10.Their break-even in sales 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. With fixed expenses of $40,000 and a unit contribution margin of $10, the break-even point is 4,000 units.

The Olson Company Has a Predicted Operating Income of $100,000