Determine the variable cost of a pen manufacturing company per pen if its breakeven point is 250,000 pens, selling price of each pen is $5, and the fixed cost per year is $750,000.
A) $2
B) $3
C) $4
D) $1

Name: Determine the variable cost of a pen manufacturing company per pen if its breakeven point is 250,000 pens, selling price of each pen is $5, and the fixed cost per year is $750,000. A) $2 B) $3 C) $4 D) $1
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Question

Quizplus · Accepted Answer

Variable cost = (Fixed cost) / (Breakeven point)= $750,000 / 250,000= $3

Determine the Variable Cost of a Pen Manufacturing Company Per