If a firm's total fixed cost is $400,000 and its fixed cost contribution per unit is $10, its break-even in units is:
A) 30,000.
B) 40,000
C) 10,000.
D) 20,000.
E) Cannot be determined with this information.

Question

Quizplus · Accepted Answer

The break-even point in units can be calculated by dividing the total fixed costs by the fixed cost contribution per unit. Therefore, $400,000 / $10 = 40,000 units.

If a Firm's Total Fixed Cost Is $400,000 and Its