If a firm can sell a product for $40.00 each,then what is the volume needed to break-even if the fixed cost of production is $125,000.00 and labour and material costs are $30.00 per item?
A)125,000
B)12,500
C)4,167
D)3,250

Question

Quizplus · Accepted Answer

To find the break-even volume, use the formula: Break-even volume = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Here, it is $125,000 / ($40 - $30) = 12,500 units.

If a Firm Can Sell a Product for $40