Calloway Cab Company determines its break-even strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $440,000, but 20 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $4.00. How many units does the firm need to sell to reach the cash break-even point? (Round your answer to the nearest whole number.)

Calloway Cab Company determines its break-even strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $440,000, but 20 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $4.00. How many units does the firm need to sell to reach the cash break-even point? (Round your answer to the nearest whole number.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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