Chulo Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each.He has determined that his fixed costs are $8,000,and his variable costs per firescreen are $45.What is his break-even point in units?
A) 47
B) 64
C) 50
D) 100
E) 178

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the fixed costs by the difference between the selling price per unit and the variable cost per unit. Here, it is $8,000 / ($125 - $45) = 100 units.

Chulo Ibsen Makes and Sells Hand-Forged Wrought Iron Fireplace Screens