Nochance.com has not reported a profit in five years. This year, the company would like to narrow its loss to ($10,000). Assuming the selling price of its single product is $36.50 per unit and its variable costs per unit are $24, how many units must be sold to achieve its target given that total fixed costs are $60,000?
A) 5,600
B) 4,800
C) 4,000
D) 3,200

Question

Quizplus · Accepted Answer

Current breakeven units = ($60,000 - 10,000) ÷ ($36.50 - 24.00) = 4,000 units

NochanceCom Has Not Reported a Profit in Five Years