Hug Me Company produces dolls.Each doll sells for $20.00.Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor.If total fixed costs are $435,000, then the break?even volume in dollars is _____.
A)$1,450,000
B)$1,023,529
C)$621,429
D)$435,000

Question

Quizplus · Accepted Answer

Break-even volume in dollars = Fixed costs / (Selling price per unit - Variable cost per unit)= 435,000 / (20 - 14)= 435,000 / 6= $1,450,000

Hug Me Company Produces Dolls