If the sales price per unit is $34, the unit variable cost is $19, and the break?even point is 12,000 units, then the total fixed costs are _____.
A)$340,000
B)$190,000
C)$180,000
D)$530,000

Question

Quizplus · Accepted Answer

Total contribution margin per unit = Sales price per unit - Unit variable cost = $34 - $19 = $15

Break-even point (in units) = Total fixed costs / Contribution margin per unit
12,000 = Total fixed costs / $15
Total fixed costs = 12,000 * $15 = $180,000

Therefore, the total fixed costs are $180,000. Option C is the correct choice.

If the Sales Price Per Unit Is $34, the Unit