Answer the following questions using the information below:
Ghan Manufacturing produces a single product that sells for $80.Variable costs per unit equal $32.The company expects total fixed costs to be $72 000 for the next month at the projected sales level of 2000 units.In an attempt to improve performance,management is considering a number of alternative actions.Each situation is to be evaluated separately.
-What is the current break-even point in terms of number of units?

Question

Quizplus · Accepted Answer

To calculate the break-even point in units, we can use the formula:
Break-even point = Fixed costs/ (Selling price per unit - Variable costs per unit)
Substituting in the values for Ghan Manufacturing:
Break-even point = $72,000/($80 - $32) = 1,500 units. 
Therefore, the current break-even point in terms of number of units is 1500 units.

As no alternative options or scenarios are provided, it is not possible to identify the best choice(s).

Answer the Following Questions Using the Information Below