Answer:
A. $1,300 units
Explanation:
Data provided
Fixed expenses = $212,290
Product price = $230.00
Variable cost = $66.70 per unit
The calculation of break-even in monthly unit sales is shown below:-
Unit sales to break even = Fixed expenses ÷ Unit Contribution Margin
= $212,290 ÷ ($230.00 per unit - $66.70 per unit)
= $212,290 ÷ $163.30 per unit
= $1,300 units
Therefore for computing the units sales to break even we simply applied the above formula.
