The product handled by Austin has an average gross profit percentage of 25%.Austin's annual salary and expenses total $200,000.Austin works 8 hours a day,5 days a week,and 40 weeks in a year.What is Austin's break-even volume per hour?
A)$500.00
B)$390.00
C)$265.00
D)$150.00
E)$100.00

Question

Quizplus · Accepted Answer

Break-even volume per hour = (Annual salary and expenses) / (Gross profit percentage * Hours worked per year)= $200,000 / (25% * 8 hours/day * 5 days/week * 40 weeks/year)= $200,000 / (0.25 * 1600)= $200,000 / 400= $500

The Product Handled by Austin Has an Average Gross Profit