What should be the unit sales to break-even

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Reference no: EM132817339

Question - To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit P250

Total fixed cost P150,000

Contribution margin percentage 40%

Desired profit after tax P250,000

Income tax rate 20%

Required - What should be the unit sales to break-even?

a. 2,500 units

b. 4,625 units

c. 3,750 units

d. 1,500 units

Reference no: EM132817339

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