Reference: 08-01
the Following Is Addison Corporation's Contribution Format Income

Reference: 08-01
The following is Addison Corporation's contribution format income statement for last month: $$\begin{array} { | l | c | } \hline \text { Sales } & \$ 1,000,000 \\\hline \text { Less variable expenses } & 700,000 \\\hline \text { Contribution margin } & 300,000 \\\hline \text { Less fixed expenses } & 180,000 \\\hline \text { Net income } & \$ 120,000 \\\hline\end{array}$$ The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.
-What is the company's break-even point in units?

A) 20,000 units.
B) 12,000 units.
C) 18,000 units.
D) 8,000 units.

Correct Answer:

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