Using the contribution margin approach, find the breakeven point in units for Consumer Products if the selling price per unit is $12, the variable cost per unit is $6, and the fixed costs are $8,040.
A) 670
B) 1,200
C) 1,340
D) 6,000

Question

Quizplus · Accepted Answer

Breakeven point (in units) = Fixed Costs / Contribution Margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $12 - $6 = $6

Breakeven point (in units) = $8,040 / $6 = 1,340 units.

Therefore, the best choice is C.

Using the Contribution Margin Approach, Find the Breakeven Point in Units