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What is the break-even point in units

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Reference no: EM132925666

Question - Evener Inc. had the following income statement for the month of July 2020:

Sales ($20 × 20,000 units) $400,000

Costs of goods sold:

Direct materials $60,000

Direct labor 40,000

Variable factory overhead 120,000

Fixed factory overhead 50,000 270,000

Gross profit $130,000

Selling and administrative expenses:

Variable $20,000

Fixed 50,000 70,000

Operating income $60,000

There were no beginning and ending inventories.

Required -

1. Calculate the contribution margin per unit.

2. What is the break-even point in units?

3. What is the margin of safety in units, assuming operating income is $60,000?

Reference no: EM132925666

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