Assume the sales price is $34 per unit and the variable cost is $19 per unit.The break-even point is 12,000 units.What are total fixed costs?
A) $180,000
B) $190,000
C) $340,000
D) $530,000

Question

Quizplus · Accepted Answer

Total fixed costs can be calculated using the formula: Fixed Costs = (Sales Price per Unit - Variable Cost per Unit) * Break-Even Point in Units. Here, it is ($34 - $19) * 12,000 = $15 * 12,000 = $180,000.

Assume the Sales Price Is $34 Per Unit and the Variable