Pet's Eye View Digital Camera is a small,durable digital camera that pet owners can clip to their pets' collars.A programmable timer takes pictures every few minutes,recording a photographic diary of the pet's day.The camera sells for $25.The average variable cost for each camera is $10 and the total annual fixed costs for plant operation are $45,000.What is the break-even point in units?
A) 1,800
B) 2,500
C) 3,000
D) 4,500
E) 5,000

Question

Quizplus · Accepted Answer

Break-even quantity equals the total fixed costs ($45,000)divided by the fixed cost contribution per unit ($25 - $10 = $15).

Pet's Eye View Digital Camera Is a Small,durable Digital Camera