To determine the unit sales needed to break even, we need to use the break-even point formula in units, which is given by:
[tex]\[ \text{Break-even point (units)} = \frac{\text{Fixed Expenses}}{\text{Per Unit Contribution Margin}} \][/tex]
Let's identify the necessary values from the provided data:
1. Fixed Expenses: [tex]$187,500
2. Per Unit Contribution Margin: \( \$[/tex]15 \)
- This value is determined from the provided data. The contribution margin per unit is the selling price per unit minus variable cost per unit. It is already given as $15.
Now, let's calculate the break-even point in units:
[tex]\[ \text{Break-even point (units)} = \frac{187,500}{15} \][/tex]
Performing the division:
[tex]\[ \text{Break-even point (units)} = 12,500 \][/tex]
Thus, the unit sales needed to break even is [tex]\( 12,500 \)[/tex] units.
Note: The boxed value of 115,500 does not match our calculation. Based on the provided data and correct application of the break-even formula, we conclude that the break-even units are 12,500. If there is a mismatch, it might indicate a potential error or misunderstanding in the provided data.
