[amp_mcq option1=”8,000 units” option2=”8,333 units” option3=”10,000 units” option4=”10,909 units” correct=”option1″]<\/p>\n
The correct answer is A. 8,000 units.<\/p>\n
The breakeven point is the point at which a company’s revenue equals its costs. At this point, the company is neither making nor losing money. To calculate the breakeven point, we can use the following formula:<\/p>\n
Breakeven point = Fixed costs \/ Contribution margin per unit<\/p>\n
The contribution margin per unit is the amount of revenue that remains after deducting the variable costs per unit. In this case, the contribution margin per unit is $4.80, which is calculated as follows:<\/p>\n
$6.00 selling price per unit – $1.20 variable production cost per unit – $0.40 variable selling cost per unit = $4.80 contribution margin per unit<\/p>\n
Therefore, the breakeven point is 8,000 units, which is calculated as follows:<\/p>\n
$4,000 fixed costs \/ $4.80 contribution margin per unit = 8,000 units<\/p>\n
Option B is incorrect because it is the number of units that the company plans to produce and sell. Option C is incorrect because it is the number of units that the company actually produced and sold. Option D is incorrect because it is the number of units that the company needs to sell in order to make a profit of $10,000.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”8,000 units” option2=”8,333 units” option3=”10,000 units” option4=”10,909 units” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-43535","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n