What Is the Break-Even Point in Units for a Product

question 74

Multiple Choice

What is the break-even point in units for a product line, assuming a unit selling price of $200, total fixed costs are $4,000, unit variable costs are $40, and target operating income is $16,000,000?

• A)25 units
• B)75 units
• C)100 units
• D)125 units
• E)100,000 units

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Definitions:

Budget Performance Report

A report comparing actual financial performance with the planned or budgeted performance.

Budgeted Amounts

Estimated financial figures for revenues, expenses, assets, and liabilities prepared for future periods.

Actual Results

The real outcomes or outputs of an activity, project, or financial operation, measured at the end of the period.

Standard Costs

A measurement of the expected cost of producing or acquiring goods under normal conditions.