If total fixed costs are $95,000, contribution margin per unit is $8.00, and targeted operating income is $30,000, how many units must be sold to breakeven?
A) 11,875
B) 8,125
C) 5,625
D) 3,750

Question

Quizplus · Accepted Answer

To breakeven, the total contribution margin must equal the total fixed costs. Therefore, the number of units that must be sold to breakeven is:$95,000 / $8.00 = 11,875 units

If Total Fixed Costs Are $95,000, Contribution Margin Per Unit