Street Company's fixed expenses total $150,000, its contribution margin ratio is 40% and its selling price per unit is $11.25. Based on this information, the break-even point in units is:

Break-even point in units= 33,333.33 units

Explanation:

The break-even point (BEP) is the quantity of each product to be sold such that the business makes no profit or loss.

The beak-even point can be determined as follows:  

The Break-even point in sales = Total general fixed cost / Contribution per unit margin

Contribution per unit = Contribution margin ration ×  selling price

                                   = 40%×11.25 =4.5

The break-even point (in unit) =  150,000/ 4.5 =33,333.33

break-even point in units= 33,333.33 units

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15 pounds of apples and 6 cups of flour