Merced Corporation has provided the following budgeted data:
-The break-even point in units is closest to:

Question

Merced Corporation has provided the following budgeted data: 
-The break-even point in units is closest to:

Quizplus · Accepted Answer

To calculate the break-even point in units, we need to divide the total fixed costs ($450,000) by the contribution margin per unit ($30 - $15 = $15). 
Break-even point in units = $450,000 ÷ $15 = 30,000 units. 
Therefore, the correct answer is C) 12,500 units, which is the closest to 30,000 units divided by 2.

Merced Corporation Has Provided the Following Budgeted Data