A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit.
-The company's break-even point in units is:

Question

A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its variable costs are $90 per unit. 
-The company's break-even point in units is:

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit (selling price per unit - variable cost per unit). Here, the contribution margin per unit is $120 - $90 = $30. The break-even point is $68,760 / $30 = 2,292 units.

A Company Manufactures and Sells a Product for $120 Per