
Serge M. answered 03/08/17
Tutor
5
(11)
Professor of Accounting, retired. Ph.D., CPA
Contribution margin is $900 - $500 = $400 per unit
Break even is $8,750,000 / $400 = 21,875 units
Any production above 21,875 units will produce a gross margin of $400 per unit.