Vandinter Corporation produces and sells a single product. Data concerning that product appear below:
-The break-even in monthly unit sales is closest to:

Question

Vandinter Corporation produces and sells a single product. Data concerning that product appear below: 
-The break-even in monthly unit sales is closest to:

Quizplus · Accepted Answer

To calculate the break-even point, we need to use the following formula:

Break-even point (in units) = fixed costs / (price per unit - variable cost per unit)

In this case, the fixed costs are $312,000, the price per unit is $40, and the variable cost per unit is $24.

Plugging these numbers into the formula, we get:

Break-even point = $312,000 / ($40 - $24) = 4,190 units

Therefore, the closest answer choice is C.

Vandinter Corporation Produces and Sells a Single Product