Gallants Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Gallant would break even at ____ units.
A)1,167
B)1,000
C)1,750
D)2,500
E)700

Question

Quizplus · Accepted Answer

Break-even point = Fixed costs / (Selling price per unit - Variable cost per unit)= $175,000 / ($250 - $100)= $175,000 / $150= 1,166.67 unitsTherefore, Gallant would break even at 1,167 units.

Gallants Industries Determines That for Its Air Compressors the Following