Roundstreet Company sells a product for $14.Variable costs are $7 per unit,and total fixed costs are $7,000.What is the break-even point in units?
A)210
B)360
C)504
D)1,000

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing total fixed costs by the contribution margin per unit (selling price per unit - variable cost per unit). Here, it is $7,000 / ($14 - $7) = 1,000 units.

Roundstreet Company Sells a Product for $14