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  • 13-08-2020
  • Business
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When Isaiah Company has fixed costs of $137,750 and the contribution margin is $29, the break-even point is

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facundobuzzetti
facundobuzzetti facundobuzzetti
  • 13-08-2020

Answer:

Break-even point in units= 4,750 units

Explanation:

Giving the following information:

When Isaiah Company has fixed costs of $137,750 and the contribution margin is $29

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 137,750 / 29

Break-even point in units= 4,750 units

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