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When Isaiah Company has fixed costs of $109,720 and the contribution margin is $26, the break-even point is a.4,220 units b.8,440 units c.12,720 units d.5,910 units

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Answer:

a. 4,220 units

Explanation:

The break-even point occurs at the output level at which the total contribution of 'x' units sold equal Isaiah Company's ficed costs.

The number of units required to break-even, 'x' is:

[tex]\$109,720 = \$26*x\\\\x= \frac{\$109,720 }{\$26}= 4,220\ units[/tex]

The break-even point is 4,220 units.

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