Question

Poplar Mills Incorporated has a predicted operating income of $74,000. Its total variable expenses are $17,000...

Poplar Mills Incorporated has a predicted operating income of $74,000. Its total variable expenses are $17,000 and its total fixed expenses are $13,500. It has a unit contribution margin of $5. Poplar Mills' breakeven sales in units is

20,900 units.

12,100 units.

2700 units.

14,100 units.

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Answer #1

breakeven sales in units=Fixed cost/contribution margin

=13500/5

which is equal to

=2700 units.

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