Answer- The break-even point in unit sales was =7120 units.
Explanation- Contribution margin = Fixed costs+ Net operating income
= $89000+$43500
= $132500
Sales units = Sales revenues/Selling price per unit
=$ 265000/$25 per unit
= 10600 units
Contribution margin per unit = Contribution margin/Sales units
= $132500/10600 units
= $12.50 per unit
Break-even point in unit sales = Fixed costs/Contribution margin per unit
= $89000/$12.50 per unit
= 7120 units
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