Figure 16 - 1 The Cumberland Company provides the following information:
Refer to Figure 16-1. What is the break-even point in units for Cumberland?

Question

Figure 16 - 1 The Cumberland Company provides the following information:
 Refer to Figure 16-1. What is the break-even point in units for Cumberland?

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit. For Cumberland, the total fixed costs are $1,000,000 and the contribution margin per unit is $20. Therefore, the break-even point in units is:

$1,000,000 / $20 = 50,000 units

Figure 16 - 1 the Cumberland Company Provides the Following