Furr Friends sells kits for making personalized grave markers for pets.The company sells each kit for $25.The average variable cost for each kit 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).

Furr Friends Sells Kits for Making Personalized Grave Markers for Pets.The