A one-machine shop producing bolts has a fixed cost of $\$ 2,000.00$ and a variable cost of $\$ 2.00$ per bolt. The selling price is $\$ 6.00$ per unit. Net profit corresponding to the breakeven volume of production is
A) 1000
B) 4000
C) -500
D) 0
E) none of the above

Question

Quizplus · Accepted Answer

At the breakeven point, total revenue equals total costs, meaning there is no net profit or loss, hence the net profit is \$0.

A One-Machine Shop Producing Bolts Has a Fixed Cost Of $2,000.00\$ 2,000.00$2,000.00

A One-Machine Shop Producing Bolts Has a Fixed Cost Of $\$ 2,000.00$