Currently, fixed costs are $561,000 and the unit contribution margin is $10.What would be the break-even point in units if variable cost is decreased by $0.50 per unit?
A) 59,053 units
B) 56,100 units
C) 53,429 units
D) 60,000 units

Question

Quizplus · Accepted Answer

Decreasing the variable cost by $0.50 per unit increases the unit contribution margin to $10.50. The break-even point in units is calculated by dividing the fixed costs by the new unit contribution margin: $561,000 / $10.50 = 53,429 units.

Currently, Fixed Costs Are $561,000 and the Unit Contribution Margin