If unit sales prices are $22 and variable costs are $12 per unit, how many units would have to be sold to break-even if fixed costs equal $17,000?
Multiple Choice
1,700 units
20,400 units
170,000 units
37,400 units
Breakeven units = Fixed cost/Contribution margin per unit = 17,000/(22-12) = 17,000/10 = 1700 units Option A is the answer |
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