Please provide the correct answer to this financial accounting problem using accurate calculations. KLM Electronics has a unit selling price of$420, variable costs per unit of $295, and fixedcosts of $187,500. Compute the break-evenpoint in units using(a) the mathematical equation and(b) the unit contribution margin.

Provided Data:Selling Price per Unit = $420Variable Cost per Unit = $295Fixed Costs = $187,500Step…

Answered: KLM Electronics has a unit selling…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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KLM Electronics has a unit selling price of $420, variable costs per unit of $295, and fixed costs of $187,500. Compute the break-even point in units using (a) the mathematical equation and (b) the unit contribution margin.