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The Breakeven Chart for Denim Inc

Question 39

Multiple Choice

The breakeven chart for Denim Inc.'s new Wholly Bluejean line shows the net income line intersecting the zero line at 250,000 units. At this number of units, the total cost line reads $80,000,000 and the sales line reads $90,000,000. The jeans are expected to sell for $250. What conclusion can be drawn from this information?


A) The breakeven chart cannot be right.
B) The breakeven point is 40,000 units.
C) The breakeven point is 250,000 units.
D) The breakeven point is 320,000 units.
E) The breakeven point is 360,000 units.

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