Betty's Breads is trying to calculate their breakeven point.Their monthly fixed costs are $8,000.The cost of making one loaf of bread,considering labor and materials,is $6.At a sales price of $10,their breakeven point would be ________ loaves of bread.
A) 60
B) 2,000
C) 800
D) 1,500

Question

Quizplus · Accepted Answer

The breakeven point is calculated by dividing the fixed costs by the difference between the sales price and the variable cost per unit: $8,000 / ($10 - $6) = 2,000 loaves.

Betty's Breads Is Trying to Calculate Their Breakeven Point