What is the break-even point in sales units? (see attached)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...
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What is the break-even point in sales units? (see attached)

Transcribed Image Text:Carter Co. sells two products: arks and bins. Last year, Carter sold 14,000 units of arks and 56,000 units of bins. Related data are as follows:
| Product | Unit Selling Price | Unit Variable Cost | Unit Contribution Margin |
|---------|--------------------|--------------------|--------------------------|
| Arks | $120 | $80 | $40 |
| Bins | $80 | $60 | $20 |
Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in sales units?
Options:
a. 40,000 units
b. 35,000 units
c. 12,000 units
d. 28,000 units
Expert Solution

Step 1
Given:
Step 2
Concept:
The ratio of the fixed cost and the subtraction of the variable cost with the unit price of the production is called a break-even point.
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