Hanson Company's data are:
Selling price per unit $120
Variable cost per unit $50
Fixed cost of operations per year $210 000
What is the break-even point in units?

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit (selling price per unit minus variable cost per unit). Here, it is $210,000 / ($120 - $50) = 3,000 units.

Hanson Company's Data Are