Jen & Berry’s currently sells 100,000 pints of ice cream per month according to the following income statement:
Total $ Per Unit $
SALES $300,000 $ 3.00
VARIABLE COSTS 200,000 $ 2.00
CONTRIBUTION MARGIN $ 100,000 $ 1.00
FIXED COSTS 50,000
NET INCOME $ 50,000
How many pints must be sold in a month at the breakeven point?
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25,000 pints
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50,000 pints
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83,334 pints
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none of the above are the correct breakeven units
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