Question

For Swifty Corporation, sales is $1000000, fixed expenses are $225000, and the contribution margin per unit is $60. What is the break-even point?

Answer 1

3,750 units

Step-by-step explanation:

With regards to the above,

Break even point = Fixed expenses / Contribution margin per unit

Fixed expenses = $225,000

Contribution margin per unit = $60

Break even point = $225,000 / $60

Break even point = 3,750 units