Assume the following information:      Amount   Per Unit   Sales $ 300,000       $ 40       Variable expenses   112,500         15       Contribution margin   187,500       $ 25       Fixed expenses   62,000                 Net operating income $ 125,500                      The unit sales to break-even is:   Multiple Choice   1,938 units.   4,133 units.   5,133 units.   2,480 units.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3BE
icon
Related questions
Question

 

Assume the following information:
  

  Amount   Per Unit  
Sales $ 300,000       $ 40      
Variable expenses   112,500         15      
Contribution margin   187,500       $ 25      
Fixed expenses   62,000                
Net operating income $ 125,500                
 

  
The unit sales to break-even is:

 

Multiple Choice
  •  

    1,938 units.

  •  

    4,133 units.

  •  

    5,133 units.

  •  

    2,480 units.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Break-even Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning