Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are as follows:
-The break-even point in units per year is:

Question

Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are as follows: 
-The break-even point in units per year is:

Quizplus · Accepted Answer

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

Break-even point (units) = Fixed costs / Contribution margin per unit

In this case, fixed costs are $1,370,000 and contribution margin per unit is $34 ($70 - $36). Therefore,

Break-even point (units) = $1,370,000 / $34 = 40,294.12 units

So the closest answer is C) 38,000 units.

Hurst Co Manufacturers and Sells a Single Product