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  3. break-even sales in units = fixed costs /contribut

Break-even sales in units = Fixed costs /Contribution margin per unit = $160,000/$4 per...

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Accounting

Break-even sales in units = Fixed costs /Contribution margin per unit

= $160,000/$4 per unit

= 40,000 units

Break-even is the point where there is no loss and no profit is possible at break-even point, total expenses are equal to total revenue.

Q4. Based on the data presented in question 3, how many units of sales would be required to realize operating income of $29,000?


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