Ceylon Express sells bottled pasteurized tea to retailers.It has the following revenues and costs:
What is the annual break-even point in units for the company?
A)50,000
B)100,000
C)166,667
D)250,000

Question

Ceylon Express sells bottled pasteurized tea to retailers.It has the following revenues and costs: 
What is the annual break-even point in units for the company?
A)50,000 
B)100,000 
C)166,667 
D)250,000

Quizplus · Accepted Answer

Break-even quantity is the total fixed costs ($50,000)divided by fixed cost contribution per unit ($.20).

Ceylon Express Sells Bottled Pasteurized Tea to Retailers