April Industries sells a product with a contribution margin of $12 per unit, fixed costs of $148,800, and sales for the current year of $200,000.How much is April's break-even point?
A)9,200 units
B)$51,200
C)12,400 units
D)4,267 units

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit. $148,800 / $12 = 12,400 units.

April Industries Sells a Product with a Contribution Margin of $12