Entertainment Central makes video game consoles,which it sells for $500.00.It estimates its variable costs to be $200.00 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 consoles
B) 1,200 consoles
C) 3,000 consoles
D) 2,500 consoles
E) 6,000 consoles

Question

Quizplus · Accepted Answer

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

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