Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.
A) 1,167
B) 1,000
C) 1,750
D) 2,500
E) 700

Question

Quizplus · Accepted Answer

Break-even point = Fixed costs / (Price per unit - Variable cost per unit)= 175,000 / (250 - 100)= 175,000 / 150= 1,166.67= 1,167 units

Markum Industries Determines That for Its Air Compressors the Following