If the sales price per unit is $34, the unit variable cost is $19, and the break- even point is 10,000 units, then the total fixed costs are:
A) $150,000
B) $190,000
C) $340,000
D) $530,000

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenue equals total costs. At this point, the total fixed costs are equal to the difference between the total revenue and the total variable costs. In this case, the total revenue is $340,000 (10,000 units x $34 per unit), and the total variable costs are $190,000 (10,000 units x $19 per unit). Therefore, the total fixed costs are $150,000 ($340,000 - $190,000).

If the Sales Price Per Unit Is $34, the Unit