Tim Marlow,the owner of The Clock Works,wanted to know how many clocks he must sell in order to cover his fixed cost at a given price.Tim knew that he had a fixed cost of $20,000 for equipment,taxes,and a bank loan.He also had a unit variable cost of $20 per clock for labor and materials.If the price Tim charges for each of his clocks is $40,what is his break-even point quantity?
A)100 clocks
B)334 clocks
C)500 clocks
D)1,000 clocks
E)10,000 clocks

Question

Quizplus · Accepted Answer

The Answer of Tim Marlow,the owner of The Clock Works,wanted to know how many clocks he must sell in order to cover his fixed cost at a given price.Tim knew that he had a fixed cost of $20,000 for equipment,taxes,and a bank loan.He also had a unit variable cost of $20 per clock for labor and materials.If the price Tim charges for each of his clocks is $40,what is his break-even point quantity?
A)100 clocks
B)334 clocks
C)500 clocks
D)1,000 clocks
E)10,000 clocks

Tim Marlow,the Owner of the Clock Works,wanted to Know How