Answer:
even point break = 8000
so correct option is 8000 units
Explanation:
given data
fix cost = $120000
variable cost = $35 each unit
selling price = $50
to find out
Which of the following is the number of units that has to be produced and sold to break-even
solution
we will find here even point break that is express as
even point break = [tex]\frac{F}{S - V}[/tex] ...................1
here F is fix cost and S is selling price and V is variable cost
so put all value in equation 1
even point break = [tex]\frac{120000}{50 - 35}[/tex]
even point break = [tex]\frac{120000}{15}[/tex]
even point break = 8000
so correct option is 8000 units