When Isaiah Company has fixed costs of $120,000 and the contribution margin is $30, the break-even point is

A) 16,000 units
B) 8,000 units
C) 6,000 units
D) 4,000 units

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and contribute to net income.

Fixed Costs

Expenses that do not change with the level of production or sales over a relevant period, such as rent, salaries, and insurance.