At the break-even point of 2,000 units, variable costs are $110,000, and fixed costs are $64,000.How much is the selling price per unit?
A)$87
B)$23
C)$32
D)Not enough information

Question

Quizplus · Accepted Answer

At the break-even point, total revenue equals total costs (variable + fixed). Total costs are $110,000 (variable) + $64,000 (fixed) = $174,000. Selling price per unit = Total costs / Number of units = $174,000 / 2,000 = $87.

At the Break-Even Point of 2,000 Units, Variable Costs Are