Answer:
The break even number of units is 116.6666666667
Breakeven point is where neither profit nor
loss is incurred by a firm. It is where you have to make just as much as what you are spending.
Break even point (BEP) is computed as ;
= Fixed cost / Contribution margin
=
$7,000 / $60
= 116.6666666667 units.
Therefore, the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit is 116.6666666667 units
