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YPad Is Priced at $500 Per Unit and Has the Following

Question 23

Multiple Choice

YPad is priced at $500 per unit and has the following cost structure: factory variable manufacturing costs per unit $100; factory fixed costs total $1,000,000; sales commissions are 10% of selling price; delivery expenses to retail stores are 5% of selling price; management salaries total $3,000,000; head office rent $200,000 per year; interest on bank loan is $50,000 per month. What is the breakeven point in units for the YPad?


A) 2,769,231 units.
B) 6,461,538
C) 6,538,462
D) 7,076,923
E) 7,384,615

Correct Answer:

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