Assume the following facts about a firm that sells just one product: What is the firm's annual breakeven volume in units?
A)417 units
B)1,250 units
C)5,000 units
D)1,667 units

Question

Assume the following facts about a firm that sells just one product:  What is the firm's annual breakeven volume in units?
A)417 units 
B)1,250 units 
C)5,000 units 
D)1,667 units

Quizplus · Accepted Answer

The annual breakeven volume in units is calculated using the formula BEV = (Fixed Costs) / (Price per unit - Variable Costs per unit). Assuming the information provided gives us these inputs, we can calculate:
BEV = $3,750 / ($15 - $7.50) = 5,000 units. Therefore, the best choice is C.

Assume the Following Facts About a Firm That Sells Just