38.67
The answer is A. (32+45+39)/3
Break Even Point = ?Variable Cost = ?Sales price/ Unit = 32Annual Fixed Cost = 72000Contribution to sales Ratio = 45%Contribution margin = 32 * 45% or 0.45Contribution margin = 14.4Contribution = Sales - Variable Cost45% Of Sales = 100% - ?SOVariable Cost = 100% of sales - 45% of salesVariable Cost = 55% of Sales priceVariable Cost = 32 * 55% or 0.55Variable Cost = 17.6Break even point = Fixed Cost/Contribution margin ratioBreakeven Point = 72000 / 0.45 = $160000 or 160000/32 = 5000 UnitsWorking Notes:Confirmation:Sales (5000 * 32) 160000Less: Variable Cost @ 55% 88000Contribution margin 72000Less: Fixed Cost 72000Net Income(loss) NIL