## A company manufactures and sells a product for $150 per unit. The company's fixed costs are $68,200, and its variable costs are $95 per unit. The company's break-even point in units is:

a) 1,364 units

b) 455 units

c) 718 units

d) 1,240 units

e) 1,137

**The Solution**

Selling price per unit (SP) 150.00

Variable costs per unit (VC) 95.00

Contribution per unit (SP-VC)(150-95) 55.00

Fixed Costs(FC) 68,200.00

Break even Point I Units (FC/ Contribution per Unit)(68,200/55) 1,240.00

Thus break even point is 1240

Units. Company will earn no profit or no loss at 1240 Units