Iversen Company has provided the following information:

What are the required sales in units for Iversen to break even?

Question

Iversen Company has provided the following information:

What are the required sales in units for Iversen to break even?

Quizplus · Accepted Answer

D)Required sales in units = (Fixed costs + Target profit)/ Contribution margin per unit
Unit contribution margin = Net sales revenue per unit - Variable costs per unit
 11ea8a42_4f98_3169_8b44_0fa33352e0cd_TB5024_00 Required sales in units = ($16,000 + 0)/ $27 = 593 units

Iversen Company Has Provided the Following Information