Crow Inc., a not-for-profit company, has a product contribution margin of $80. The fixed costs are $800,000.

Question:

Crow Inc., a not-for-profit company, has a product contribution margin of $80. The fixed costs are $800,000. Crow Inc. has set a target profit of $70,000 per year. What is the breakeven point in units?

A) 13,000 units

B) 14,333 units

C) 10,000 units

D) 9,999 units

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...