At the accounting break-even point, Swiss Mountain Gear sells 14,600 ski masks at a price of $10 each. At this level of production, the depreciation is $58,000 and the variable cost per unit is $4. What is the amount of the fixed costs at this production level?
A)$29,600
B)$52,400
C)$61,300
D)$87,600
E)$145,600

Question

Quizplus · Accepted Answer

Fixed costs_{accounting break-even} = [14,600 F1F1F1S1F1F1F10 ($10 - $4)] - $58,000 = $29,600

At the Accounting Break-Even Point, Swiss Mountain Gear Sells 14,600