A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $180,000.The number of units the company must sell to break even is
A)90,000 units.
B)36,000 units.
C)360,000 units.
D)60,000 units.

Question

Quizplus · Accepted Answer

Break-even point = Fixed costs / (Unit sales price - Unit variable cost)= 180,000 / (5 - 3)= 180,000 / 2= 90,000 units

A Company Sells a Product Which Has a Unit Sales