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Neville's Pillow Store Sells Pillows with a Sales Price of $25

Question 60

Multiple Choice

Neville's Pillow Store sells pillows with a sales price of $25 each. Each pillow costs the company $15 to produce, and the store incurs a total of $100,000 in fixed costs each year.
What is the yearly breakeven point in units?


A) 4,000 pillows
B) 6,667 pillows
C) 15,000 pillows
D) 10,000 pillows
E) None of the above

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