Question

Fuschia Company's contribution margin per unit is $11. Total fixed costs are $78,760. What is Fuschia's break-even point in units?

Answer 1

Answer:

7160

Explanation:

Break even point is the number of units produced and sold at which net income is zero. It is the point where revenues equals cost

break-even point = Fixed cost / contribution margin

$78,760 / $11 = 7160