If unit variable costs for a product is $12, the selling price of the product is $20, and the fixed costs are $64,000. How many units must be sold to break-even point?
A) 2,000
B) 3,200
C) 5,333
D) 8,000

Question

Quizplus · Accepted Answer

If unit variable costs for a product is $12, the selling price of the product is $20, and the fixed costs are $64,000, then the breakeven is 8,000 units. The profit margin per item is $8 ($20-$12). The breakeven is 64,000 divided by 8.

If Unit Variable Costs for a Product Is $12, the Selling