Use the figure for the question(s) below.
-A maker of computer games expects to sell 475,000 games at a price of $48 per game. These units cost $10 to produce. Selling, general, and administrative expenses are $1.0 million and depreciation is $280,000. What is the EBIT break-even point for the number of games sold in this case?
A) $26,667
B) $26,316
C) $100,000
D) $33,684

Question

Use the figure for the question(s) below. 
-A maker of computer games expects to sell 475,000 games at a price of $48 per game. These units cost $10 to produce. Selling, general, and administrative expenses are $1.0 million and depreciation is $280,000. What is the EBIT break-even point for the number of games sold in this case?
A) $26,667 
B) $26,316 
C) $100,000 
D) $33,684

Quizplus · Accepted Answer

D) Units sold = $1,280,000 / $38 = $33,684

Use the Figure for the Question(s) Below