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Karlik Enterprises distributes a single product whose selling price is $28 per unit and whose variable...

Karlik Enterprises distributes a single product whose selling price is $28 per unit and whose variable expense is $22 per unit. The company’s monthly fixed expense is $24,000. Exercise 5-2 Part 2 2. Calculate the company’s break-even point in unit sales.

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Answer #1

Break even point in unit sales

= Fixed cost/Contribution margin per unit

= 24,000/(28-22)

= 4,000 units

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