MusicMatch Central makes reproduction jukeboxes,which it sells to baby boomers for $500.It estimates its average variable costs to be $200 per jukebox.It figures its fixed costs to be $600,000 per year.How many jukeboxes does it have to sell to break even?
A)1,200 jukeboxes
B)2,000 jukeboxes
C)2,500 jukeboxes
D)3,000 jukeboxes

Question

Quizplus · Accepted Answer

Break-even quantity equals the total fixed costs ($600,000)divided by the fixed cost contribution per unit ($500-$200 = $300).

MusicMatch Central Makes Reproduction Jukeboxes,which It Sells to Baby Boomers