Data concerning Sinisi Corporation's single product appear below: The break-even in monthly unit sales is closest to:

A) 2,038 units
B) 7,027 units
C) 2,870 units
D) 3,978 units

Question

Data concerning Sinisi Corporation's single product appear below:   The break-even in monthly unit sales is closest to:A)  2,038 unitsB)  7,027 unitsC)  2,870 unitsD)  3,978 units

maggie evans · Accepted Answer

Final Answer : C, Explanation :  First, we need to calculate the contribution margin per unit, which is selling price per unit minus variable cost per unit.Contribution margin per unit = $120 - $62 = $58Next, we can use the formula below to calculate the break-even point in monthly unit sales:Break-even point = Fixed expenses ÷ Contribution margin per unitBreak-even point = $179,600 ÷ $58 = 3,093 unitsTherefore, the closest answer is C) 2,870 units.

Data concerning Sinisi Corporation's single product appear below: The break-even in monthly unit sales is closest to:

A) 2,038 units
B) 7,027 units
C) 2,870 units
D) 3,978 units

Definitions

Learning Objectives

Learning Objectives

Related questions