Traxer shoes launches baby shoes at a price of $10 per unit. The fixed costs are $15,000 and variable costs are $5 per unit. What sales volume is required to break even?
A) 7500 units
B) 3000 units
C) 4000 units
D) 6500 units
E) 3500 units

Question

Quizplus · Accepted Answer

To find the break-even point in units, use the formula: Break-even point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Here, it is $15,000 / ($10 - $5) = 3,000 units.

Traxer Shoes Launches Baby Shoes at a Price of $10