Green Company's contribution margin of $5 per unit and fixed operating costs of $45,000 breaks even, in terms of operating earnings, at:
A) 5,000 units.
B) 9,000 units.
C) 45,000 units.
D) 225,000 units.

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed operating costs by the contribution margin per unit. Therefore, $45,000 / $5 per unit = 9,000 units.

Green Company's Contribution Margin of $5 Per Unit and Fixed