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

Question

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

Quizplus · Accepted Answer

Break-even point in units = Fixed expenses / contribution margin per unit

Fixed expenses = $733,800 
Contribution margin per unit = Unit selling price - Variable expenses per unit 
= $180 - $70 - $20 
= $90

Break-even point in units = $733,800 / $90 = 8,153.33 
Rounding up gives us the closest answer, which is 1,300 (C).

Data Concerning Nazario Corporation's Single Product Appear Below: the Break-Even