Answer:
9,792.75 units
Explanation:
The formula to compute the break even point in units is shown below:
Break even point in units = Fixed cost ÷ Weightage average Contribution margin per unit
where,
Fixed cost is $378,000
And, the Weightage average Contribution margin per unit is
= (Total contribution margin) ÷ (Total sales units)
= (8,000 units ×$34 + $2,000 × $57) ÷ (8,000 units + 2,000 units)
= ($272,000 + $114,000) ÷ (10,000 units)
= ($386,000) ÷ (10,000 units)
= $38.6 per unit
Now the break even point in units is
= $378,000 ÷ 38.6 per unit
= 9,792.75 units
