Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit= $150
The variable cost is $110 per unit, and fixed costs are $200,000.
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 200,000 / (150 - 110)
Break-even point in units= 5,000 units
<u>Now, the desired profit is $50,000:</u>
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Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (200,000 + 50,000) / 40
Break-even point in units= 6,250
