Answer:
= 45%
Explanation:
<em>Break-even point is the level of activity that achieves no profit or loss. At this level, profit is zero because the total revenue is equal to total cost.</em>
The break-even point is calculated as
Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit
<em>Contribution per unit = Selling Price - Variable cost</em>
<em>So the units requited to achieve target for Springfield is:</em>
Units to achieve target profit
= (160,000 + 200,000)/(18-10)
= 45,000 units
In % = (45,000/100,000 ) × 100
= 45%