Total fixed costs are $300. The selling price is $15. Average variable costs are $5. The break-even volume of production is ________ units.
A)30
B)20
C)60
D)15

Name: Total fixed costs are $300. The selling price is $15. Average variable costs are $5. The break-even volume of production is ________ units. A)30 B)20 C)60 D)15
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Break-even volume of production = Fixed costs / (Selling price - Average variable costs)= 300 / (15 - 5)= 300 / 10= 30 units

Total Fixed Costs Are $300