A group of fifteen entrepreneurs starts a manufacturing firm.The total fixed costs that they have incurred in setting up the business amounts to $50000.The variable cost of selling a unit of product is $25.What is the break-even point if each unit is priced at $50?

Question

Quizplus · Accepted Answer

A)Break-even point = Fixed costs / (Selling price -Variable costs per unit)= $50000 / (50 - 25)= 2000
B)Break-even point = Fixed costs / (Selling price -Variable costs per unit)= $50000 / (50 - 25)= 2000
C)Break-even point = Fixed costs / (Selling price -Variable costs per unit)= $50000 / (50 - 25)= 2000
D)Break-even point = Fixed costs / (Selling price -Variable costs per unit)= $50000 / (50 - 25)= 2000
E)Break-even point = Fixed costs / (Selling price -Variable costs per unit)= $50000 / (50 - 25)= 2000

A Group of Fifteen Entrepreneurs Starts a Manufacturing Firm