In September, Smith Company Had the Following Financial Statement Amounts

Multiple Choice

In September, Smith Company had the following financial statement amounts related to producing 500 units: $\begin{array}{lc}\text { Direct materials } & \$ 27,000 \\\text { Depreciation expense } &11,000 \\\text { Sales revenue } & 95,000 \\\text { Direct labour } & 23,000 \\\text { Rent expense } & 25,000\end{array}$ How much is the break-even point, rounded to the nearest whole number?

A) $18 units
B) $50 units
C) $122 units
D) 400 units