Question

Johnston Medical manufactures dental devices. The company reports the following information: Total fixed costs: $129,600 Selling...

Johnston Medical manufactures dental devices. The company reports the following information:

  • Total fixed costs: $129,600
  • Selling price per unit: $302
  • Variable cost per unit: $184

How many units will be sold at the break-event point? (Round to the nearest whole number, e.g., 123.)

704

331,688

429

1,098
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Homework Answers

Answer #1

Fixed cost = $129,600

Selling price per unit = $302

Variable cost per unit = $184

Contribution margin per unit = Selling price per unit - Variable cost per unit

= 302 - 184

= $118

Break even point in units = Fixed cost/Contribution margin per unit

= 129,600/118

= 1098 (Round to the nearest whole number)

Fourth option is the correct option.

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