The fixed costs for manufacturing hand-painted wooden decorative plaques are $7,000. The 5-inch oval plaques are sold at craft fairs for $2.25. Variable costs to produce 100 plaques are $100. What is the break-even point in units?
A) 1,786 plaques
B) 3,111 plaques
C) 5,600 plaques
D) 7,000 plaques

Question

Quizplus · Accepted Answer

BEP (In units) = FC/ (SP - VC); [7000/ (2.25 - 100/100)].

The Fixed Costs for Manufacturing Hand-Painted Wooden Decorative Plaques Are