If the fixed cost is $30000 and the contribution margin per unit is $600 per unit, then the breakeven in units will be ____________?
Correct answer: A. 50 units
- A. 50 units
- B. 60 units
- C. 70 units
- D. 65 units
Explanation
Break-even units = fixed costs ÷ contribution margin per unit, so $30,000 ÷ $600 = 50 units. Hence, option a is correct.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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