Answer:
the break even point in unit sales is 12,000 units
Explanation:
The computation of the break even point in sales is shown below;
But before that following calculations need to be done
Sales revenue $300000
Less: Fixed expenses $96,000
Less: Net operating income $24,000
Variable expenses $180,000
Units sold = $300,000 ÷ $20 = 15,000 units
Variable cost per unit
= $180,000 ÷ 15,000 units
= $12
Now the break even point in unit sales is
= Fixed cost ÷ contribution margin per unit
= $96,000 ÷ ($20 - $12)
= $96,000 ÷ 8
= 12,000 units
hence, the break even point in unit sales is 12,000 units
