Goff Corporation sells products for $75 each that have variable costs of $50 per unit. Goff's fixed cost is $350,000.Required:Calculate the contribution margin per unit, then use the per unit contribution margin approach to find the break-even point in units and dollars.
What will be an ideal response?
Unit contribution margin is $25
Break-even point in units is $350,000 ÷ $25 = 14,000 units
Break-even point in dollars is 14,000 units × $75 ÷ unit = $1,050,000
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