Can anyone help me on this question, answers are given, thanks Yoo Computers is

Question

Can anyone help me on this question, answers are given, thanks

Yoo Computers is introducing a new game system that promises to never become outdated. Yoo will sell the systems for $200, and it will accrue $130 in variable costs to produce. If cash fixed expenses are $35 million per year and the depreciation and amortization expenses are $7 million per year, then what is the Accounting Operating Profit Break-Even point for Yoo?

323,077 units.

600,000 units.

210,000 units.

500,000 units.

323,077 units.

Explanation / Answer

Contribution =sales - variable cost

= 200-130= $70

Fixed exp.= 35+7= 42 million

Break even point= Fixed exp./contribution

Brek even point= 42 million/70= 600000units .. answer

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