Entertainment Central makes video game consoles,which it sells for $500.It estimates its variable costs to be $200 per console.It figures its fixed costs to be $600,000 per year.How many consoles does it have to sell to break even?
A) 2,000
B) 2,500
C) 3,000
D) 1,200

Question

Quizplus · Accepted Answer

Break-even point = Fixed costs / (Selling price per unit - Variable cost per unit)= 600,000 / (500 - 200)= 600,000 / 300= 2,000

Entertainment Central Makes Video Game Consoles,which It Sells for $500