Find the accounting break-even point given the following information: Price = $50 per unit; variable cost = $35 per unit; annual ﬁxed costs = $50,000; depreciation = $10,000.
A) 1,160 units
B) 2,298 units
C) 3,333 units
D) 3,429 units
E) 4,000 units

Question

Quizplus · Accepted Answer

The accounting break-even point is calculated as (Fixed Costs + Depreciation) / (Price - Variable Cost). Here, it is ($50,000 + $10,000) / ($50 - $35) = 4,000 units.

Find the Accounting Break-Even Point Given the Following Information: Price