Burgandy Manufacturing Produces a Single Product That Sells for $80

Multiple Choice

Burgandy Manufacturing produces a single product that sells for $80. Variable costs per unit equal $35. The company expects total fixed costs to be $90,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. What is the current breakeven point in terms of number of units?

A) 2,000 units
B) 1,125 units
C) 2,572 units
D) 2,046 units