Answer:
Instructions are below.
Explanation:
Giving the following information:
Fixed costs= $27,600,000
Unitary variable cost= $805
Unit selling price= $1,150
<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= 27,600,000 / (1,150 - 805)
Break-even point in units= 80,000 units
Desired income= $5,175,000
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (27,600,000 + 5,175,000) / 345
Break-even point in units= 95,000 units
