A product is priced to sell for $12 with average variable costs of $8. The company's total fixed costs are $120,000. The minimum number of units that must be sold in order to the breakeven point with zero profits are:
A) 40,000
B) 30,000
C) 15,000
D) 10,000

Question

Quizplus · Accepted Answer

To find the breakeven point, use the formula: Fixed Costs / (Selling Price - Variable Cost per Unit). Here, it is $120,000 / ($12 - $8) = 30,000 units.

A Product Is Priced to Sell for $12 with Average