Moyas Corporation sells a single product for $10 per unit. Last year, the company's sales revenue was $310,000 and its net operating income was $47,000. If fixed expenses totaled $108,000 for the year, the break-even point in unit sales was:

If fixed expenses totaled $108,000 for the year, the break-even point in unit sales was:21, 600 Units

Explanation:

The Break Even Point in units is 21,600units.

We follow the below  steps in order to arrive at the

First we find Total variable costs of Moyas Corporation

Net operating income=Sales-variable cost-Fixed cost

47000=310000-variable cost-108000

Variable cost=310000-108000-47000

Variable Cost=155000

Next we find the number of units sold

No:of unit sold= Total Sales/Selling price per unit

No:of unit sold =310000/10=31,000

Then we find Variable Cost per unit

Variable cost per unit=Total Variable cost/Number of unit sold

Variable cost per unit=155000/31000=5

We calculate Contribution Margin per unit

Contribution Margin per unit =Selling price per unit-Variable cost per unit

Contribution Margin per unit = 10-5= 5

Finally we calculate Break Even Point (BEP) in units as:

BEP=Fixed cost per unit/Contribution Margin per unit

BEP=108,000/5=21600 Units