If the Piper & Son's fixed cost for making pickled peppers is $200,000,and its variable cost per jar is $1,how many jars would the company have to sell at $3 per jar to break even?
A) 50,000
B) 66,667
C) 100,000
D) 133,333
E) 300,000

Question

Quizplus · Accepted Answer

C)The breakeven point is the total fixed cost divided by the difference between the price and the variable cost. The fixed cost is given as $200,000. The denominator is $3 - $1, or $2 per jar. The breakeven point is therefore $200,000/$2 = 100,000 jars of pickled peppers.

If the Piper & Son's Fixed Cost for Making Pickled