Dynamo Company has the following revenue and cost information: Sales Price = $50 per unit Fixed...
Dynamo Company has the following revenue and cost information:
- Sales Price = $50 per unit
- Fixed Costs = $120,000
- Variable Costs = $40 per unit
What is the break-even point in units?
| A. |
12,000 |
|
| B. |
3,000 |
|
| C. |
2,400 |
|
| D. |
150,000 |
Homework Answers
Answer: Option (A) 12,000
Contribution margin = Sales price - Variable cost
Contribution margin = $50 - $40 = $10
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