This answer was found by dividing fixed costs by the variable costs. The breakeven point in units is found by dividing fixed costs by the contribution margin.
This answer results from dividing fixed cost by the sales price. 6,000 units of sales would only be enough to cover fixed costs, not the variable costs ($180,000 Fixed Cost ÷ $30 sales price).
The breakeven point in units is found by dividing fixed costs by the contribution margin. The contribution margin is $4 ($30 ? $26). $180,000 Fixed Costs ÷ $4 Contribution Margin = 45,000 units.
The correct number of units to produce and sell to reach breakeven is 45,000 units. The breakeven point in units is found by dividing fixed costs by the contribution margin. The contribution margin is $4 ($30 ? $26). $180,000 Fixed Costs÷ $4 Contribution Margin = 45,000 units.
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