The Foggy Futures Weather Network offers an annual almanac for sale each year with information about predicted weather patterns, severe storm safety tips, and a tracking chart. The finished product sells for $35, with a variable cost per unit of $21. The company has operating costs of $1,050,000. What is the firm's breakeven point in units?
A) 75,000
B) 50,000
C) 80,000
D) 65,000

Question

Quizplus · Accepted Answer

Breakeven point in units = Fixed costs / (Selling price per unit - Variable cost per unit)= 1,050,000 / (35 - 21)= 1,050,000 / 14= 75,000 units

The Foggy Futures Weather Network Offers an Annual Almanac for Sale