T-shirts Unlimited is conducting a breakeven analysis on unbleached cotton tops. Fixed costs are $100,000 and the per-unit contribution to fixed costs is $20. To break even, the company must sell ________ units. Group of answer choices 500 200 20,000 5,000

Respuesta :

Assuming Fixed costs are $100,000 and the per-unit contribution to fixed costs is $20. To break even, the company must sell is:5,000 units.

Break even

Using this formula

Break even=Fixed cost/ Per-unit contribution to fixed costs

Where:

Fixed cost=$100,000

Per-unit contribution to fixed costs=$20

Let plug in the formula

Break even=$100,000/$20

Break even=5000 units

Therefore to break even, the company must sell is:5,000 units.

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