If the breakeven point is 1,000 units and each unit sells for $50,then ________.
A) selling 1,040 units will result in a loss
B) selling $60,000 will result in a loss
C) selling $50,000 will result in zero profit
D) selling $45,000 will result in profit

Question

Quizplus · Accepted Answer

The breakeven point is where the revenue equals the total cost, resulting in zero profit.

Given that the breakeven point is 1,000 units and each unit sells for $50, the total revenue at breakeven is:
1,000 units x $50/unit = $50,000

Therefore, selling $50,000 worth of units will result in zero profit, which is option C.

Selling 1,040 units will exceed the breakeven point and should result in a profit, so option A is incorrect.

Selling $60,000 worth of units would result in a loss since the total cost at breakeven for 1,000 units is not disclosed, so option B is incorrect.

Similarly, selling $45,000 worth of units would not reach the breakeven point and would result in a loss, so option D is incorrect.

If the Breakeven Point Is 1,000 Units and Each Unit