A one-person automobile oil change in rural Mississippi has a fixed overhead of $\$ 900.00$ per month. The variable cost per oil change is $\$ 10.00$. The charge is $\$ 30.00$ for one oil change. The breakeven number of oil changes per month is
A) 30
B) 45
C) 90
D) 22.5
E) none of the above

Question

Quizplus · Accepted Answer

The breakeven point is calculated by dividing the fixed costs by the difference between the charge per oil change and the variable cost per oil change: $ \frac{900}{30 - 10} = 45 $.

A One-Person Automobile Oil Change in Rural Mississippi Has a Fixed