A five-pound bag of roasted peanuts sells for $8, and the average variable costs are $4 per bag.What is the breakeven point in bags if the total fixed costs for the roasted peanuts are $80 000?
A) 20 000
B) 40 000
C) 80 000
D) 120 000

Question

Quizplus · Accepted Answer

Breakeven point = Total fixed costs / (Selling price per unit - Average variable cost per unit)= 80,000 / (8 - 4)= 80,000 / 4= 20,000 bags

A Five-Pound Bag of Roasted Peanuts Sells for $8, and the Average