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Break-even points

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Assume the following data for the questions:

Company A Fixed Costs = $100,000
Company A Variable Costs per unit = $0.50
Company A price per unit = $3.00

Company B Fixed Costs = $50,000
Company B depreciation = 10 percent
Company B Contribution Margin = $1.50

20. The break-even point for Company A is:
a) 20,000 units
b) 28,571.43 units
c) 33,333.33 units
d) 40,000 units

21. The break-even point for Company B is:
a) 20,000 units
b) 30,000 units
c) 33,333.33 units
d) 40,000 units.

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This shows how to determine break-even points.

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