A firm has total fixed costs of $2 million; its price is $20 per unit above its variable costs. Its break-even point in units
A) is 75,000.
B) is 100,000.
C) is 20,000,000.
D) cannot be determined based on the data provided.

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing the total fixed costs by the price per unit above variable costs. Here, it's $2,000,000 / $20 = 100,000 units.

A Firm Has Total Fixed Costs of $2 Million; Its