If fixed costs are $256,000, the unit selling price is $36, and the unit variable costs are $20, what is the break-even sales (units)?
A) 12,800 units
B) 4,571 units
C) 16,000 units
D) 7,111 units

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the contribution margin per unit (selling price - variable cost). Here, it is $256,000 / ($36 - $20) = 16,000 units.

If Fixed Costs Are $256,000, the Unit Selling Price Is