Crissel Food products has a margin per unit of $5.00 for a high-end brand of pasta,total fixed expenses of $50 million,and a market demand of 400 million packs per year.Calculate the break-even market share of the company.
A)2.5%
B)5%
C)7.5%
D)10%
E)12.5%

Question

Quizplus · Accepted Answer

To calculate the break-even market share, first determine the break-even volume: $50 million / $5.00 = 10 million packs. Then, divide the break-even volume by the total market demand: 10 million / 400 million = 0.025 or 2.5%.

Crissel Food Products Has a Margin Per Unit of $5