ABC Co sells its product for 12 per unit variable costs total 7.50 per unit and fixed costs are 8000 Using the contribution margin approach the firm's break-even point is?

Break even point = Fixed Cost / Contribution margin ratio

Contribution margin ratio = Contribution margin /sales

Contribution margin = Sales - variable cost

Contribution margin = 12 - 7.5

Contribution margin per unit = 4.5

Contribution margin ratio = 4.5/12 = 0.375

Break even point = 8000/0.375 = $ 21333