given the information in the table below, how many units will be required to be sold to hit the break - even…

given the information in the table below, how many units will be required to be sold to hit the break - even point?\n|fixed cost|$150,000|\n|variable cost|$0.40|\n|selling price|$4.40|\n? units

given the information in the table below, how many units will be required to be sold to hit the break - even point?\n|fixed cost|$150,000|\n|variable cost|$0.40|\n|selling price|$4.40|\n? units

Answer

Explanation:

Step1: Calculate contribution margin per unit

$4.40 - $0.40 = $4.00$

Step2: Apply break-even point formula

$\frac{150000}{4} = 37500$

Answer:

37500 units