Walton reported sales of $640,000,fixed costs of $314,000,and a profit of $92,000.If the contribution margin is $8 per unit,how many units did Walton sell?

Question

Quizplus · Accepted Answer

Contribution margin per unit = Sales per unit - Variable cost per unit
Contribution margin per unit = $8
Total profit = $92,000
Total fixed cost = $314,000
Sales revenue = $640,000
Using the formula to calculate the break-even point in units:
Break-even point in units = (Fixed costs + Profit) / Contribution margin per unit
Break-even point in units = ($314,000 + $92,000) / $8 per unit
Break-even point in units = 50,750 units
Therefore, Walton sold 50,750 units to make a profit of $92,000. Thus, the answer is C.

Walton Reported Sales of $640,000,fixed Costs of $314,000,and a Profit