What are the break-even units?

PQR Manufacturing Ltd. has £3,000,000 of fixed costs for the forthcoming period. The company produces a single product ‘X’, which has a selling price of £75 per unit and total cost of £50.

75% of the total cost represents variable costs.

What are the break-even units?
A . 80,000
B . 240,000
C . 120,000
D . 40,000

View Answer

Answer: A