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Narchie sells a single product for $50. Variable costs are 60% of the selling price, and...

Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units.

Narchie: ______

A) will break-even by selling 20,000 units.

B) will break-even by selling 13,333 units.

C) will break-even by selling 8,000 units.

D) will break-even by selling 1,000,000 units.

E) cannot break-even because it loses money on every unit sold.

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Selling Price per unit Variable Costs Contribution Margin per unit $ 50.00 $30.00 $20.00 BEP Units Fixed Cost/ Contribution margin per unit Fixed Overhead Contribution Margin BEP- $400,000 $ 20.00 20,000 Units Answer: Option A: will break-even by selling 20,000 units

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