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Air Purifier Inc. computes its break-even point strictly on the basis of cash expenditures related
to fixed costs. Its total fixed costs are $2 , 440 , 000 , but 10 percent of this value is represented
by depreciation. Its contribution margin (price minus variable cost) for each unit is $38 . How
many units does the firm need to sell to reach the cash break-even point? (Round your answer to
the nearest whole number.)

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Air Purifier Inc- computes its break-even point strictly on the basis.pdf

  • 1. Air Purifier Inc. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $2 , 440 , 000 , but 10 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $38 . How many units does the firm need to sell to reach the cash break-even point? (Round your answer to the nearest whole number.)