Davison Toaster Corp. sells its products for $150 per unit. It has the following costs:
$$\begin{array} { l r r r }
\text { Rent } & \$ 115,000 \
\text { Factory labor } & \$ 20 \text { per writ } \
\text { Executive salaries } & \$ 200,000 \
\text { Raw materials } & \$ 6 \text { per witit }
\end{array}$$
The break-even point is
A) less than 3,000 units.
B) 3,000 units.
C) more than 3,500 units.
D) Not enough information has been provided to determine the break-even point.

Question

Davison Toaster Corp. sells its products for $150 per unit. It has the following costs:
$$\begin{array} { l r r r } 
\text { Rent } & \$  115,000  \
\text { Factory labor } & \$  20  \text { per writ } \
\text { Executive salaries } & \$  200,000  \
\text { Raw materials } & \$  6  \text { per witit }
\end{array}$$
The break-even point is
A) less than 3,000 units.
B) 3,000 units.
C) more than 3,500 units.
D) Not enough information has been provided to determine the break-even point.

Quizplus · Accepted Answer

The Answer of Davison Toaster Corp. sells its products for $150 per unit. It has the following costs:
$$\begin{array} { l r r r } 
\text { Rent } & \$  115,000  \
\text { Factory labor } & \$  20  \text { per writ } \
\text { Executive salaries } & \$  200,000  \
\text { Raw materials } & \$  6  \text { per witit }
\end{array}$$
The break-even point is
A) less than 3,000 units.
B) 3,000 units.
C) more than 3,500 units.
D) Not enough information has been provided to determine the break-even point.

Davison Toaster Corp The Break-Even Point Is A) Less Than 3,000 Units

Davison Toaster Corp The Break-Even Point Is
A) Less Than 3,000 Units