Paney Company makes calendars.Information on cost per unit is as follows:

- Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000.The price per calendar is $10.What is the break-even point in sales dollars?

A) $120,000
B) $80,000
C) $58,330
D) $21,670
E) $28,000

Question

Paney Company makes calendars.Information on cost per unit is as follows:

- Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000.The price per calendar is $10.What is the break-even point in sales dollars?
 
A) $120,000 
B) $80,000 
C) $58,330 
D) $21,670 
E) $28,000

Quizplus · Accepted Answer

break-even sales = 8,000 × $10 = $80,000
OR
($13,000 + $35,000) / 60% = $80,000

Paney Company Makes Calendars