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: $\begin{array}{ll}\text { Direct materials}&\$27,000 \\\text { Depreciation expense.}&11,000 \\\text {Sales revenue }&95,000 \\\text {Direct labour. }&23,000 \\\text {Rent expense }& 25,000\\\end{array}$
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