Use the following information to determine the break-even point in units (rounded to the nearest whole unit):

Use the following information to determine the break-even point in units (rounded to the nearest whole unit):

Unit sales	50,000 Units
Unit selling price	$14.50
Unit variable cost	$7.50
Fixed costs	$186,000

12,828

26,571

8,455

46,667

24,800

Break-even point in units = Fixed costs/Contribution margin per unit
186,000/($14.50 - $7.50) = 26,571 units

Use the following information to determine the contribution margin ratio:

Unit sales	50,000 Units
Unit selling price	$14.50
Unit variable cost	$7.50
Fixed costs	$204,000

6.9%.

48.3%.

24.5%.

51.7%.

34.1%.

Contribution margin ratio = ($14.50 - $7.50)/$14.50 = 48.3%

A company's product sells at $12 per unit and has a $5 per unit variable cost. The company's total fixed costs are $98,000. The break-even point in units is:

5,158.

7,000.

8,167.

14,000.

19,600.

$98,000/($12-$5) = 14,000 units

Maroon Company's contribution margin ratio is 24%. Total fixed costs are $84,000. What is Maroon's break-even point in sales dollars?

$20,160.

$110,526.

$350,000.

$240,000.

$84,000.

Break-even point in dollars = $84,000/0.24 = $350,000