Acompany sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $180,000. the number of units the company must sell to break even is question 9 options:
a.90,000 units
b.36,000 units
c.360,000 units
d.60,000 units

a.90,000 units

Explanation:

For computing the break-even point in units, we need to apply the formula which is shown below:

= ( Total Fixed cost) ÷ (Contribution margin per unit)

where,  

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

= $5 - $3

= $2

And, the other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= ($180,000) ÷ ($2 per unit)

= 90,000 units

answer; (15,000)workers each

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