Data concerning Enslow Corporation's single product appear below:
The break-even in monthly unit sales is closest to:

Question

Data concerning Enslow Corporation's single product appear below: 
The break-even in monthly unit sales is closest to:

Quizplus · Accepted Answer

To calculate the break-even point, we can use the following formula:

Break-even point (in units) = Fixed expenses ÷ (Price per unit - Variable expenses per unit)

Fixed expenses = $94,000
Price per unit = $40
Variable expenses per unit = $22.50

Plugging in the numbers:

Break-even point = $94,000 ÷ ($40 - $22.50)
Break-even point = $94,000 ÷ $17.50
Break-even point = 5,371.43 units

Rounding up to the nearest whole number:

Break-even point = 5,372 units

Therefore, the closest answer choice is B) 4,390.

Data Concerning Enslow Corporation's Single Product Appear Below