Answer
Breakeven Point in Units = Fixed Costs / Contribution Margin per Unit
Breakeven Point in Units = $16,500,000 / $110
Breakeven Point in Units = 150,000 units
Work Step by Step
Contribution Margin per Unit = (Contribution Margin per Unit for New Customers * Percentage of New Customers) +
(Contribution Margin per Unit for Upgrade Customers * Percentage of Upgrade Customers)
Contribution Margin per Unit = ($130 * 0.60) + ($80 * 0.40)
Contribution Margin per Unit = $78 + $32
Contribution Margin per Unit = $110
