Chapter 21, Problem S21.6SE

To determine

Breakeven Point:

Breakeven point is the level of sales at which the net profit is nil. It can be explained as a situation where the business is generating a sale that is equal to the expenses incurred and hence no profits no loss. Breakeven point in units is calculated with the help of following formula:

$\text{Breakeven point }\left(\text{units}\right)\text{ = }\frac{\text{Total Fixed Costs}}{\text{Contribution Margin Per Unit}}$

To Determine:

Breakeven point in units for Mackler Inc