Saraﬁne, Inc.sells a single product for $20.Variable costs are $8 per unit and ﬁxed costs total $120,000 at a volume level of 5,000 units.Assuming that ﬁxed costs do not change, Saraﬁne's break-even sales would be:

Question

Quizplus · Accepted Answer

To find the break-even point, we need to use the formula:

Break-even point = Fixed costs ÷ (Price per unit - Variable cost per unit)

Plug in the given values:

Fixed costs = $120,000
Price per unit = $20
Variable cost per unit = $8

Break-even point = $120,000 ÷ ($20 - $8) = 10,000 units

Therefore, the break-even sales would be 10,000 units x $20 per unit = $200,000. So, the correct answer is B.