Poole Products Inc. Poole Products Inc. has the following product information available:
Refer to the Poole Products Inc. information above. What is the break-even point in units?

Question

Poole Products Inc. Poole Products Inc. has the following product information available:
 Refer to the Poole Products Inc. information above. What is the break-even point in units?

Quizplus · Accepted Answer

The break-even point in units can be calculated using the formula: 
Break-even point (in units) = Fixed costs / Contribution margin per unit

From the information given, the fixed costs are $48,000 and the contribution margin per unit is $20.

Therefore, break-even point (in units) = $48,000 / $20 = 2,400 units.

So, the best choice is C as it gives the correct break-even point.