Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Waterfall Company sells a product for $150 per unit.
The variable cost is $80 per unit
The fixed costs are $270,000.
To calculate the break-even point in units, we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 270,000/ (150 - 80)= 3,857 units
Now, we have to include the desired profit in the formula:
Break-even point= (fixed costs + desired profit)/ contribution margin
Break-even point= (270,000 + 36,000)/ 70= 4,371 units
