If the sale price per unit is $75, the variable expense per unit is $45, and total fixed expenses are $1,155,000, what will the break-even sales in units be?

Question

Quizplus · Accepted Answer

The break-even point formula is:
Break-even point (in units) = Total fixed costs/Contribution margin per unit
Contribution margin per unit = Sale price per unit - variable expenses per unit
Contribution margin per unit = $75 - $45 = $30
Break-even point (in units) = $1,155,000/$30 = 38,500 units. Therefore, the answer is C: 38,500.

If the Sale Price Per Unit Is $75, the Variable