Cool Shades,Inc.(CSI)manufactures biotech sunglasses.The variable materials cost is $1.69 per unit,and the variable labor cost is $3.04 per unit.Suppose the firm incurs fixed costs of $750,000 during a year in which total production is 450,000 units and the selling price is $11.50 per unit.What is the cash break-even point?
A)76,453 units
B)88,652 units
C)110,783 units
D)128,907 units
E)140,768 units

Question

Quizplus · Accepted Answer

Q_{Cash Break-even} = $750,000/($11.50 - $1.69 - $3.04) = 110,783 units