If fixed costs are $400,000 and the unit contribution margin is $20, the amount of units that must be sold in order to have a zero profit is

A) 25,000 units
B) 10,000 units
C) 400,000 units
D) 20,000 units

Zero Profit

A situation where a business's revenues exactly match its expenses, resulting in no net profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit contributes to covering fixed costs.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.