Blackner Corporation produces and sells a single product.Data concerning that product appear below: The break-even in monthly unit sales is closest to:

Question

Blackner Corporation produces and sells a single product.Data concerning that product appear below:  The break-even in monthly unit sales is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $220.00 per unit - $70.40 per unit = $149.60 per unit
Unit sales to break even = Fixed expenses ÷ Unit CM
= $492, 184 ÷ $149.60 per unit = 3, 290 units

Blackner Corporation Produces and Sells a Single Product