Contribution per unit (L) = SP – C per unit
= 250 – 125
= 125
BEP (units) = Fixed cost / L
= 12,000 / 125
= 96 (Answer)
Why?
This is required by an investor to know how many units are needed to be produced for making a profit. Here, the investor needs to produce 97 units to make profit, since before that either there is non-profit-no-loss (at 96 units) or only loss (before 96 units).
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