Miniature Molding is planning to introduce a valve for use in medical implants.Variable costs per unit are $250.The maximum price MM could charge is $325.Fixed costs associated with this product are $20,000,000.The worst-case forecast calls for sales of 240,000 valves, the best-case for 290,400.Will MM reach accounting break-even in the worst-case scenario?
A)Sales will fall short of break-even by $8,666,667.
B)The product will exactly break even.
C)Sales will fall short of break even by $5,000,025.
D)Sales will exceed break even by $58,000,000.

Question

Quizplus · Accepted Answer

Sales will fall short of break-even by $8,666,667.

Miniature Molding Is Planning to Introduce a Valve for Use