You have been asked to calculate the break-even point for the televisions that your company produces. You know that fixed costs are equal to $6000 and variable costs are $20. The televisions sell for $120. What is the break-even point?
A) 70 units
B) 50 units
C) 40 units
D) 60 units

Question

Quizplus · Accepted Answer

Break-even point = Fixed costs / (Selling price per unit - Variable cost per unit)= 6000 / (120 - 20)= 6000 / 100= 60 units

You Have Been Asked to Calculate the Break-Even Point for the Televisions