Answer:
Break-even point in units= 7,600
Explanation:
Giving the following information:
Selling price= $44
Unitary variable cost= $25
When 14,600 units are sold, profits equaled $133,000.
<u>First, we need to calculate the total fixed costs:</u>
Fixed costs= Total contribution margin - net income
Fixed costs= 14,600*(44 - 25) - 133,000
Fixed costs= $144,400
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 144,400 / (44 - 25)
Break-even point in units= 7,600
