A bottling machine produces an average of 11,500 units per week during the winter months, when its maximum sustainable throughput is 15,000 units per week. During the summer months, the machine produced 16,000 units per week when its maximum sustainable throughput was raised to 20,000 per week.
-A new product has the following information: fixed costs = $650,000, variable costs = $17 per unit, and the projected sales price = $30 per unit. Calculate the break-even quantity.
A)25,490 units
B)100,000 units
C)50,000 units
D)12,745 units
E)Do not have enough information to compute

Question

Quizplus · Accepted Answer

The break-even quantity is calculated by dividing the fixed costs by the difference between the sales price and variable costs per unit: $650,000 / ($30 - $17) = 50,000 units.

A Bottling Machine Produces an Average of 11,500 Units Per