Answered: If fixed costs are $400,000 and the…

If fixed costs are $400,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit? a.400,000 units b.10,000 units c.20,000 units d.25,000 units

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5MC: A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the...

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Question

If fixed costs are $400,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit?

a.400,000 units

b.10,000 units

c.20,000 units

d.25,000 units

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