Borich Corporation produces and sells a single product.Data concerning that product appear below: The break-even in monthly unit sales is closest to:
A)2,055
B)4,030
C)4,194
D)3,426

Question

Borich Corporation produces and sells a single product.Data concerning that product appear below:  The break-even in monthly unit sales is closest to:
A)2,055 
B)4,030 
C)4,194 
D)3,426

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $150.00 per unit - $73.50 per unit = $76.50 per unit
Unit sales to break even = Fixed expenses ÷ Unit CM
= $308,295 ÷ $76.50 per unit = 4,030 units

Borich Corporation Produces and Sells a Single Product