Iversen Company has provided the following information Price

Iversen Company has provided the following information Price per unit $4 ariable cost per unit Fixed costs per month 1 $12,00 What are the required sales in units for Iversen to break even? (10 Points) A) 381 units B) 480 units C) 281 units D) 501 units

Solution

Contribution margin =Sales-Variable expenses

=(40-15)=$25/unit

Hence breakeven=Fixed costs/Contribution margin

=(12000/25)

=480 units.