Question

The following information pertains to the Flying Fig Corporation: Total Units for information given 6,000 Fixed Cost per Unit
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Answer #1

Total fixed cost = Fixed cost per unit x Number of units

= 100 x 6,000

= $600,000

Selling price per unit = $450

Variable cost per unit = $200

Contribution margin per unit = Selling price per unit-Variable cost per unit

= 450-200

= $250

Break even point ( in units) = Fixed cost/Contribution margin per unit

= 600,000/250

= 2,400 units

Correct option is D.

Kindly comment if you need further assistance. Thanks‼!

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