Compute the firms breakeven point

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Using thefollowing Income Statement for ABC's Company, compute the firm's breakeven point.

           Sales (30,000units)                 $150,000

           Variablecosts                           100,800

           ContributionMargin                 $ 49,200

           Fixed Manufacturing Costs          24,000

           OperatingIncome                    $ 25,200

           Interest                                       18,000

           Earnings beforetaxes               $    7,200

           Taxes(30%)                                 2,160

           NetIncome                             $    5,040

The breakeven point is:

(a) 4,800 units

(b) 14,634 units

(c) 7,142 units

(d) 18,000 units

Reference no: EM13257946

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