Question

Smith Enterprises distributes a single product whose selling price is $16.10 and whose variable expense is $11.80 per unit. The company’s monthly fixed expense is $17,630.

Calculate the company’s break-even point in unit sales. BE: Unit Sales?

A. 4,100 units
B. 4,000 units
C. 1,095 units
D. 1,495 units

Answer 1

Answer:I think its

Step-by-step explanation:A

Answer 2

Answer:

Option A is the correct answer.

Step by step explanation:

The break-even point in unit sales is the point at which the company's total revenue is equal to its total expenses, resulting in zero profit or loss. We can calculate the break-even point in unit sales using the following formula:

Break-even point (in units) = Fixed expenses / (Selling price per unit - Variable expenses per unit)

Substituting the given values, we get:

Break-even point (in units) = $17,630 / ($16.10 - $11.80)
Break-even point (in units) = $17,630 / $4.30
Break-even point (in units) = 4,100 units

Therefore, the company's break-even point in unit sales is 4,100 units. Option A is the correct answer.