Fuschia Company's contribution margin per unit is $12. Total fixed costs are $84,000. What is Fuschia's break-even point in units?
A) 5,760.
B) 7,000.
C) 26,520.
D) 70,000.
E) 57,600.

Question

Quizplus · Accepted Answer

Break-even point in units can be calculated by dividing total fixed cost by contribution margin per unit. 
Break-even point in units = Total Fixed Cost / Contribution Margin per unit 
= $84,000 / $12 
= 7,000 units. 
Therefore, the best answer choice is (B).

Fuschia Company's Contribution Margin Per Unit Is $12