Mitchell Company sells its product for $100 per unit.The company's accountant provided the following cost information: $$\begin{array} { l l l }
\text { Manufacturing costs } & \$ 25,000 + 45 \% \text { of sales } \
\text { Selling costs } & \$ 15,000 + 20 \% \text { of sales } \
\text { Administrative costs } & \$ 25,000 + 10 \% \text { of sales }
\end{array}$$
What is the company's break-even point in units?
A) 1,000
B) 750
C) 2,600
D) 4,000

Question

Mitchell Company sells its product for $100 per unit.The company's accountant provided the following cost information: $$\begin{array} { l l l } 
\text { Manufacturing costs } & \$ 25,000 + 45 \% \text { of sales } \
\text { Selling costs } & \$ 15,000 + 20 \% \text { of sales } \
\text { Administrative costs } & \$ 25,000 + 10 \% \text { of sales }
\end{array}$$
 What is the company's break-even point in units?
A) 1,000
B) 750
C) 2,600
D) 4,000

Quizplus · Accepted Answer

The Answer of Mitchell Company sells its product for $100 per unit.The company's accountant provided the following cost information: $$\begin{array} { l l l } 
\text { Manufacturing costs } & \$ 25,000 + 45 \% \text { of sales } \
\text { Selling costs } & \$ 15,000 + 20 \% \text { of sales } \
\text { Administrative costs } & \$ 25,000 + 10 \% \text { of sales }
\end{array}$$
 What is the company's break-even point in units?
A) 1,000
B) 750
C) 2,600
D) 4,000

Mitchell Company Sells Its Product for $100 Per Unit What Is the Company's Break-Even Point in Units? A) 1,000

Mitchell Company Sells Its Product for $100 Per Unit What Is the Company's Break-Even Point in Units?
A) 1,000