Compute the number of units that must be sold in order to have zero profit when fixed costs are $810,000 and unit contribution margin is $90.
A) 8,100 units
B) 9,000 units
C) 6,500 units
D) 6,810 units

Question

Quizplus · Accepted Answer

To find the number of units needed to break even (zero profit), divide the total fixed costs by the unit contribution margin: $810,000 / $90 = 9,000 units.

Compute the Number of Units That Must Be Sold in Order