What is the break-even point in sales units? (see attached)

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...
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What is the break-even point in sales units? (see attached)

Carter Co. sells two products, arks and bins. Last year, Carter sold 14,000 units of arks and 56,000 units of bins. Related data are as follows:
Product Unit Selling Price Unit Variable Cost Unit Contribution Margin
Arks
$120
$80
$40
Bins
80
60
20
Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in sales units?
a. 40.000 units
Ob. 35,000 units
Oc. 12.000 units
Od. 28.000 units
Transcribed Image Text:Carter Co. sells two products, arks and bins. Last year, Carter sold 14,000 units of arks and 56,000 units of bins. Related data are as follows: Product Unit Selling Price Unit Variable Cost Unit Contribution Margin Arks $120 $80 $40 Bins 80 60 20 Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in sales units? a. 40.000 units Ob. 35,000 units Oc. 12.000 units Od. 28.000 units
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The ratio of the fixed cost and the subtraction of the variable cost with the unit price of the production is called a break-even point.

 

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