Lester Co. produces toy kites. It has a fixed cost of $62,150. If the selling price per unit is $9.50 and the variable cost per unit is $6.25, the breakeven point is:
A)$9,207
B)6,542
C)22,600
D)29,860
E)None of these

Question

Quizplus · Accepted Answer

The breakeven point in units is calculated by dividing the fixed costs by the difference between the selling price per unit and the variable cost per unit. Here, it is (62150 / (9.50 - 6.25)) = 16,400 units. None of the options provided match this calculation.

Lester Co Produces Toy Kites