Like- U 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) $435,000
D) $621,429

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

Like- U Company Produces Dolls