Blane Corporation produces and sells a single product. Data concerning that product appear below: The break-even in monthly unit sales is closest to:
A)4,401
B)2,360
C)3,470
D)7,374

Question

Blane Corporation produces and sells a single product. Data concerning that product appear below:  The break-even in monthly unit sales is closest to:
A)4,401 
B)2,360 
C)3,470 
D)7,374

Quizplus · Accepted Answer

To calculate the break-even point, we need to use the following formula:

Break-even point (in units) = Fixed expenses ÷ (Price per unit - Variable expenses per unit)

Using the data provided in the table, we can calculate the break-even point as follows:

Break-even point = 152,000 ÷ (20 - 8)

Break-even point = 152,000 ÷ 12

Break-even point = 12,667

Therefore, the break-even in monthly unit sales is closest to 3,470 (rounded to the nearest whole number). Option C is the correct answer.

Blane Corporation Produces and Sells a Single Product