Wellington Cabinets has fixed costs totaling $ 96000. Its contribution margin per unit is $ 1.50, and

Question:

Wellington Cabinets has fixed costs totaling $ 96000. Its contribution margin per unit is $ 1.50, and the selling price is 5.50 per unit.

Compute the break even point in 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...