An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is:
A)100.
B)2,000.
C)500.
D)1,000.
E)800.

Question

Quizplus · Accepted Answer

The break-even point is calculated as the fixed costs divided by the difference between the unit selling price and the variable cost per unit. Here, it's $10,000 / ($70 - $50) = $10,000 / $20 = 500 units.

An Alternative Will Have Fixed Costs of $10,000 Per Month