Annual fixed costs for an organization are $250,000; the average price per procedure is $250. Variable costs are $150. The break-even point is $250.

Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing the total fixed costs by the contribution margin per unit (price per procedure minus variable cost). Here, it would be $250,000 / ($250 - $150) = 2,500 procedures, not $250.

Annual Fixed Costs for an Organization Are $250,000; the Average