Use the information below to answer the following question(s).
A small automotive parts manufacturer is evaluating opening a new manufacturing plant for assembly of its battery chargers line.The location being considered has a monthly fixed cost of $42,000 and a variable cost of $3 per charger.Chargers sell for $ 7 each.
-What is the break-even point in units per month?
A)10,500
B)11,000
C)9,000
D)12,700

Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing the fixed costs by the difference between the selling price per unit and the variable cost per unit. Here, it is $42,000 / ($7 - $3) = 10,500 units.

Use the Information Below to Answer the Following Question(s)