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  3. a product has a contribution margin of $3 per unit

A product has a contribution margin of $3 per unit and selling price of $10...

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Question

Accounting

A product has a contribution margin of $3 per unit and selling price of $10 per unit. Fixed costs are $18,000. Assuming new technology doubles the unit contribution margin but increases total fixed costs by $12,000, what is the breakeven point in units?

a.

2,000 units
b.

5,000 units
c.

3,000 units
d.

6,000 units

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