Answer:
Break-even point= 96,000 units
Explanation:
Giving the following information:
Zeus, Inc. produces a product that has a variable cost of $9.50 per unit. The company's fixed costs are $40,000. The product sells for $12.00 a unit and the company desires to earn a $20,000 profit.
To calculate the sales in units, we need to use the break-even formula:
Break-even point= (fixed costs + profit) / contribution margin
Break-even point= (40,000 + 200,000) / (12 - 9.5)= 96,000 units
