Answer:
Break-even point in units= 12,769 units
Explanation:
Giving the following information:
Selling price per unit= $170
Variable expenses per unit= $81.10
Fixed expense per month= $997,920
Monthly target profit of $137,240
To determine the number of units to be sold, we need to use the break-even point in units formula. We need to add the desired profit.
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (997,920 + 137,240) / (170 - 81.1)
Break-even point in units= 12,769 units
