Question

The price per unit is $120 for JMO Manufacturing Company, its variable cost per unit is $80, and its fixed costs are $4,000. What is the breakeven point in units using the contribution margin method? A. 40 B. 80 C. 100 D. 60

Answer 1

100

Step-by-step explanation:

So you will need to find the point where revenue equals costs

our revenue equation is 120x

Our cost equation is 80x+4000

80x+4000=120x

4000=40x

100 = x

Breakeven is at 100 units.