How many units must BAC Company sell to break even if the selling price per unit is $8.50, variable costs are $4.00 per unit, and fixed costs are $9,000?
A) 1,000
B) 1,059
C) 2,000
D) 2,250

Question

Quizplus · Accepted Answer

To find the break-even point in units, use the formula: Break-even point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Here, it is $9,000 / ($8.50 - $4.00) = 2,000 units.

How Many Units Must BAC Company Sell to Break Even