NTQ Corporation produces and sells a single product with a price of $12 per unit and variable costs of $8 per unit. Total fixed costs per month are $8,000.
a)Calculate NTQ's contribution margin per unit.
b)How many units must NTQ sell monthly to break even?
c)If fixed costs increase by $500 per month, how many extra units must NTQ sell each month to continue breaking even?

Question

Quizplus · Accepted Answer

The Answer of NTQ Corporation produces and sells a single product with a price of $12 per unit and variable costs of $8 per unit. Total fixed costs per month are $8,000.
a)Calculate NTQ's contribution margin per unit.
b)How many units must NTQ sell monthly to break even?
c)If fixed costs increase by $500 per month, how many extra units must NTQ sell each month to continue breaking even?

NTQ Corporation Produces and Sells a Single Product with a Price