Key West Inc. manufactures inflatable kayaks. Each kayak sells for $350. At a production level of 10,000 units, the total variable manufacturing cost is $1,200,000 and the fixed manufacturing cost in total is $420,000. At this level of activity, the company will incur variable selling and administrative costs of $900,000 and fixed selling and administrative costs of $770,000. 

How many units have to be sold to break even?

Answer rating: 100% (QA)

To calculate the breakeven point we need to determine the total cost and the contribution margin pe... View the full answer