US CMA Part 2 · Chapter 5 · Question 1 of 15
Marlow Fitness sells a product for $60 per unit. Variable cost is $36 per unit and annual fixed costs are $312,000. What is the breakeven point in units?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 13,000 units
Explanation
Breakeven units = fixed costs / contribution margin per unit = $312,000 / ($60 - $36) = $312,000 / $24 = 13,000 units. Dividing by the selling price (5,200) ignores variable costs.
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