Kayla wants to know how many units she must sell to cover all of her costs. She indicates to you that her selling price is $25 per unit, her fixed costs are $7,000, and the variable costs per unit are $15. What is her break-even point?
A) 400 units
B) 500 units
C) 700 units
D) 1,150 units

Question

Quizplus · Accepted Answer

$7,000 fixed costs/($25 selling price - $15 variable costs) = 700 units.

Kayla Wants to Know How Many Units She Must Sell