Answer:
Option (d) is correct.
Explanation:
Given that,
Break-even = 2,000 units
Variable cost = $2 per unit
Fixed costs = $20,000
Break-even(In units) = Fixed cost ÷ contribution margin
Break-even(In units) = Fixed cost ÷ (selling price per unit - variable cost per unit)
2,000 = $20,000 ÷ (selling price per unit - $2)
selling price per unit - $2 = $10
selling price per unit = $10 + $2
= $12