What is the break-even point in units, Accounting Basics

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What is the break-even point in units

Question:

XYZ Company is a retailer of widgets. XYZ pays $4.75 for each widget and sells them for $8.00. Monthly fixed costs are $26,000. The widget cost is the only variable cost.

a. What is the contribution margin per unit?

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

c. How many units will XYZ need to sell to earn target profit of $13,000?

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Accounting Basics: What is the break-even point in units

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