Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 5 - Cost-Volume-Profit Relationships - The Foundational 15 - Required - Page 217: 8

Answer

Break even point in unit sales = Fixed expenses $\div$ Contribution margin per unit = 6,000 $\div$ 8 = 750 (units)

Work Step by Step

Fixed expenses = 6,000 dollars Contribution margin per unit = 8 dollars (Calculated in question 1) Divide Fixed expenses by Contribution margin per unit to get that the Break-even point in unit sales = 6,000 $\div$ 8 = 750 (units)
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