Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in units?

A) 40,000 units
B) 12,000 units
C) 35,000 units
D) 28,000 units

Break-even Point

The level of sales or production at which total revenues equal total expenses, resulting in neither profit nor loss.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, or insurance premiums.