Answer:
23,750 units
Explanation:
The computation of the break even point in unit sales is shown below
Break even point = (Fixed expenses) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
The variable expense per unit is
= (Sale revenue - fixed expenses - net operating income) ÷ (Number of sales units)
= ($280,000 - $17,000 - $95,000) ÷ ($280,000 ÷ 10 per unit)
= ($280,000 - $17,000 - $95,000) ÷ (28,000 units)
= $6 per uni
And, the fixed expenses is $95,000
Now put these values to the above formula
So, the value would equal to
= ($95,000) ÷ ($10 - $6)
= 23,750 units
