Total fixed costs are $300.The selling price is $15.Average variable costs are $5.The break-even volume of production is ________ units.
A) 60
B) 40
C) 30
D) 20
E) 15

Question

Quizplus · Accepted Answer

The formula to calculate the break-even point is:
Break-even volume = Total fixed costs / (Selling price - Average variable costs)

Plugging in the given values, we get:
Break-even volume = 300 / (15 - 5) = 30 units.

Therefore, the correct answer is option C.

Total Fixed Costs Are $300