Dream Threads Company sells hand - sewn shirts for $60 per shirt. It incurs monthly fixed costs of $4,000. The contribution margin ratio is calculated to be 50%. What is the breakeven point in units? (Round your answer up to the nearest whole unit.)

Dream Threads Company sells hand - sewn shirts for $60 per shirt. It incurs monthly fixed costs of $4,000. The contribution margin ratio is calculated to be 50%. What is the breakeven point in units? (Round your answer up to the nearest whole unit.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Question

Dream Threads Company sells hand - sewn shirts for $60 per shirt. It incurs monthly fixed costs of $4,000. The contribution margin ratio is calculated to be 50%. What is the breakeven point in units? (Round your answer up to the nearest whole
unit.)
...
O A. 120 units
O B. 2,000 units
O C. 134 units
O D. 67 units

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