O'Boyle Co.'s fixed costs are $256,000,the unit selling price is $36,and the unit variable costs are $20,what is the break-even sales (units)?

Question

Quizplus · Accepted Answer

Break-even point (in units) = Fixed costs / Contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $36 - $20 = $16
Break-even point (in units) = $256,000 / $16 = 16,000 units