My Learning Cart
?
Categories
Account

What is the break-even point in units if fixed costs are $20,000 and contributio

₹0.0
Login to Download
  • 📥 Instant PDF Download
  • ♾ Lifetime Access
  • 🛡 Secure & Original Content

What’s inside this PDF?

Question: What is the break-even point in units if fixed costs are $20,000 and contribution margin per unit is $5?

Options:

  1. 4,000 units
  2. 5,000 units
  3. 2,000 units
  4. 10,000 units

Correct Answer: 5,000 units

Solution: 

Break-even point (units) = Fixed Costs / Contribution Margin per unit = $20,000 / $5 = 4,000 units.

What is the break-even point in units if fixed costs are $20,000 and contributio

Practice Questions

Q1
What is the break-even point in units if fixed costs are $20,000 and contribution margin per unit is $5?
  1. 4,000 units
  2. 5,000 units
  3. 2,000 units
  4. 10,000 units

Questions & Step-by-Step Solutions

What is the break-even point in units if fixed costs are $20,000 and contribution margin per unit is $5?
  • Step 1: Identify the fixed costs. In this case, the fixed costs are $20,000.
  • Step 2: Identify the contribution margin per unit. Here, the contribution margin per unit is $5.
  • Step 3: Use the break-even point formula: Break-even point (units) = Fixed Costs / Contribution Margin per unit.
  • Step 4: Plug in the values: Break-even point (units) = $20,000 / $5.
  • Step 5: Calculate the result: $20,000 divided by $5 equals 4,000 units.
No concepts available.
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely
Home Practice Performance eBooks