Question

For Sanborn Co., sales is $1,000,000, fixed expenses are $300,000, and the contribution margin per unit is $60. What is the break-even point? g

Answer 1

Answer:

Break-even point in units= 5,000

Explanation:

Giving the following information:

Sales= $1,000,000

Fixed expenses= $300,000

Contribution margin per unit= $60

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 300,000 / 60

Break-even point in units= 5,000