If a firm has a break-even point of 20,000 units and the contribution margin on the sirm's single product is $3.00 per unit and fixed costs are $60,000, what will the firm's net income be at sales of 30,000 units?

Question

o.k. the break even amount will be 20,000 units time $3.00 = $60,000

total sales is 30,000 units times $3.00 = $90,000

$90,000 - $60,000 = $30,000 net income

$30,000 net income FINAL ANSWER

Is this correct???

Answer 1

Yes, this is correct.