Assume the sales price is $100 per unit and the variable cost is $75 per unit.Total fixed costs are $150,000.Then the break-even volume in dollar sales is ________.
A) $1,500
B) $150,000
C) $200,000
D) $600,000

Question

Quizplus · Accepted Answer

The break-even volume in dollar sales is calculated using the formula: Break-even volume = Fixed Costs / (Sales price per unit - Variable cost per unit). Plugging in the numbers: $150,000 / ($100 - $75) = $150,000 / $25 = 6,000 units. To find the dollar sales, multiply the units by the sales price per unit: 6,000 units * $100 = $600,000.

Assume the Sales Price Is $100 Per Unit and the Variable