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In: Accounting

MDI Enterprises prepared the following income statement for June: Sales revenue (6,000 units) $150,000 Cost of...

MDI Enterprises prepared the following income statement for June: Sales revenue (6,000 units) $150,000 Cost of goods sold: Fixed costs $18,000 Variable costs 30,000 48,000 Gross profit 102,000 Operating expenses: Fixed costs 27,000 Variable costs 12,000 39,000 Operating income $ 63,000 How many units must MDI sell in order to break-even?

2,500 units

900 units

3,480 units

There is not enough information provided to determine the answer.

Solutions

Expert Solution

Answe) 900 units

A) Sales price per unit ($150,000/ 6,000) = $25 per unit

B) Variable cost per unit ($30,000 / 6,000)= $5 per unit

C) Contribution per unit (A-B) $20 per unit

D) Fixed cost $18,000

E) Break even sales ( D/C) = 900 units

ekkarill92 answered 2 years ago
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