Reference: 08-08
Janet Company produces a game that sells for $17 per game. Variable expenses are $9 per game and fixed expenses total $172,000 annually.
-The break-even point is closest to?
A)21,500 units.
B)24,000 units.
C)10,118 units.
D)19,111 units.

Question

Quizplus · Accepted Answer

Break-even point = Fixed expenses / (Selling price per unit - Variable expenses per unit)= 172,000 / (17 - 9)= 172,000 / 8= 21,500 units

Reference: 08-08 Janet Company Produces a Game That Sells for $17 Per