DeLong Inc. has fixed operating costs of $470,000, variable costs of
$2)80 per unit produced, and its products sell for $4.00 per unit. What is the company's breakeven point, i.e., at what unit sales volume would income equal costs?
A) 391,667
B) 411,250
C) 431,813
D) 453,403
E) 476,073

Question

Quizplus · Accepted Answer

The breakeven point is calculated as Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Here, it is $470,000 / ($4.00 - $2.80) = 391,667 units.