Question: If the contribution margin per unit is $2, fixed costs are $10,000, target operating profit is $1,000, and variable costs are $5,000, calculate the breakeven

If the contribution margin per unit is $2, fixed costs are $10,000, target operating profit is $1,000, and variable costs are $5,000, calculate the breakeven point in units.

Select one:

a. 3,500

b. 2,500

c. 2,000

d. 5,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!