Assume the following cost information for Katherine Company: $\begin{array}{lr}
\text { Selling price per unit } & \$ 144 \
\text { Variable costs per unit } & \$ 95 \
\text { Total fixed costs } & \$ 80,000 \
\text { Tax rate } & 40 \%
\end{array}$ The break-even point in units is _____.
A)500 units
B)556 units
C)1,000 units
D)1,633 units

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenue equals total costs. To calculate the break-even point, we can use the following formula:Break-even point = Total fixed costs / (Selling price per unit - Variable costs per unit)Plugging in the given values, we get:Break-even point = 80,000 / (144 - 95) = 1,633 unitsTherefore, the break-even point is 1,633 units.

Assume the Following Cost Information for Katherine Company The Break-Even Point in Units Is _____