Answer:
Break-even point in units= 160 units
Explanation:
Giving the following information:
Unitary variable cost= $25
Selling price per unit= $40
Fixed costs= $2,400
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 2,400 / (40 - 25)
Break-even point in units= 160 units