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Red Corp. has a unit Contribution Margin of $6, Variable Expenses of $2 per unit, and Fixed Expenses of $3,000. What is Red Corp.'s break even point? A. 500 units B. 50 units C. 1,500 units D. 750 units

Sagot :

Answer:

A. 500 units

Explanation:

The computation of the break even point is given below:

Break even point is

= Fixed cost ÷ Contribution margin

= $3,000 ÷ $6

= 500 units

By dividing the fixed cost from the contribution margin we can get the break even point in units

Hence, the correct option is A.

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