EXERCISE 6-17 (30 MINUTES)

20,000 units × $30.00 per unit = $600,000 in sales.

Alternative solution:

Fixed expenses

Break-even point= in unit sales Unit contribution margin

$180,000

= =20,000 units

$9.00 per unit

Break-even point= in sales dollars CM ratio

= = $600,000 in sales

0.30