A company sells a product which has a unit sales price of $5 unit variable cost of $3 and total fixed costs of $240000. The number of units the company must sell to break even is
A) 120000 units.
B) 48000 units.
C) 480000 units.
D) 80000 units.

Question

Quizplus · Accepted Answer

Break-even point = Fixed costs / (Unit sales price - Unit variable cost)= 240000 / (5 - 3)= 240000 / 2= 120000 units

A Company Sells a Product Which Has a Unit Sales