Given the following numbers from Books and Things, match the correct value with its appropriate term.
Books and Things normally produces 100,000 units, and the fixed overhead rate is based on this amount. Fixed selling and administrative expense is $74,000.
-Break-even quantity (in units)

Question

Quizplus · Accepted Answer

The break-even quantity is the number of units that must be sold to cover all fixed costs. Given that the fixed selling and administrative expense is $74,000, and assuming this is the only fixed cost provided, we would need to know the selling price per unit and the variable cost per unit to calculate the exact break-even quantity. However, since $74,000 is a fixed cost and none of the other options provided directly relate to calculating the break-even quantity without additional information, we can deduce that the correct match for the break-even quantity is the only option left that represents a quantity, which is F) 14,500. This assumes that 14,500 units sold would cover the $74,000 of fixed selling and administrative expenses, given the right conditions of selling price and variable cost per unit, which are not provided.

Given the Following Numbers from Books and Things, Match the Correct