Calculate break-even sales (in units) when fixed cost is $216,000, unit selling price is $120, and unit variable cost is $60.
A) 4,100 units
B) 2,300 units
C) 3,400 units
D) 3,600 units

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit (selling price - variable cost). Here, it is $216,000 / ($120 - $60) = 3,600 units.

Calculate Break-Even Sales (In Units) When Fixed Cost Is $216,000