To calculate the break-even point, we need to determine how many units must be sold to cover all fixed and variable costs. The formula to calculate the break-even point in units is:
Break-even units=Total Fixed CostsSelling Price per Unit-Variable Cost per Unit\text{Break-even units} = \frac{\text{Total Fixed Costs}}{\text{Selling Price per Unit} - \text{Variable Cost per Unit}}Break-even units=Selling Price per Unit-Variable Cost per UnitTotal Fixed Costs​ Given:
Selling Price per Unit = $0.55
Variable Cost per Unit = $0.45 + $0.02 = $0.47
Contribution Margin per Unit = $0.55 - $0.47 = $0.08
Total Fixed Costs:
Total Fixed Costs=1500+4000+500=6000\text{Total Fixed Costs} = 1500 + 4000 + 500 = 6000Total Fixed Costs=1500+4000+500=6000 Break-even units:
Break-even units=60000.08=75,000 units\text{Break-even units} = \frac{6000}{0.08} = 75,000 \text{ units}Break-even units=0.086000​=75,000 units Therefore, the correct answer is C. 75,000 units.