Fixed costs are $3000000 and the unit contribution margin is $150. What is the break-even point?
A) $7500000
B) $20000000
C) 7500 units
D) 20000 units

Question

Quizplus · Accepted Answer

Break-even point can be calculated using the formula:

Break-even point = Fixed costs/Unit contribution margin

Substituting the values given:

Break-even point = $3000000/$150 = 20000 units

Hence, the answer is D - 20000 units.

Fixed Costs Are $3000000 and the Unit Contribution Margin Is