Answer the following questions using the information below:
Kelly's Armoured Suits sells a single product.10 000 units were sold resulting in $100 000 of sales revenue,$40 000 of variable costs,and $12 000 of fixed costs.
-Break-even point in units is:
A)2000 units.
B)3000 units.
C)5000 units.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

Break-even point in units = Fixed costs / (Selling price per unit - Variable cost per unit)= $12,000 / ($100,000 / 10,000 - $40,000 / 10,000)= $12,000 / $6= 2,000 units

Answer the Following Questions Using the Information Below