True Fruit,Inc.sells frozen raspberry fruit bars for $2.50 each.The variable cost per bar is $1.35.Total fixed costs are $25,645.The breakeven point in sales dollars is:
A)$25,645
B)$47,490
C)$55,750
D)$63,150

Question

Quizplus · Accepted Answer

To find the breakeven point in sales dollars, we can use the following formula:

Breakeven Point (in sales dollars) = Fixed Costs / (1 - (Variable Costs / Sales Price))

Plugging in the given values, we get:

Breakeven Point = $25,645 / (1 - ($1.35 / $2.50)) = $55,750

Therefore, the best choice is C.