Ceylon Express sells bottled pasteurized tea to retailers.It has the following revenues and costs:

What is the annual break-even point in units for the company?
A) 50,000
B) 250,000
C) 100,000
D) 166,667
E) 500,000

Question

Ceylon Express sells bottled pasteurized tea to retailers.It has the following revenues and costs:

What is the annual break-even point in units for the company?
A) 50,000 
B) 250,000 
C) 100,000 
D) 166,667 
E) 500,000

Quizplus · Accepted Answer

Break-even quantity is the total fixed costs ($50,000)divided by fixed cost contribution per unit ($.20).

Ceylon Express Sells Bottled Pasteurized Tea to Retailers