Mia Enterprises sells a product for \( \$ 90 \) per unit. The variable cost is \( \$ 40 \) per unit, while fixed costs are \( \$ 75,000 \). Determine the: a. Break-even point in sales units b. Determine the break-even point in sales units if the selling price increased to \( \$ 100 \) per unit \( \$ \) per unit units

To determine the break‐even point in sales units, we first calculate the contribution margin per unit, which is the selling price minus the variable cost per unit. a. With a selling price of $90 per unit:  Contribution Margin = $90 – $40 = $50 per unit  Break-even Point (units) = Fixed Costs / Contribution Margin = $75,000 / $50 = 1,500 units b. With the increased selling price of $100 per unit:  Contribution Margin = $100 – $40 = $60 per unit  Break-even Point (units) = $75,000 / $60 = 1,250 units Thus, the break-even points are: - a. 1,500 units when the unit price is $90 - b. 1,250 units when the unit price is $100