At the accounting break-even point,Swiss Mountain Gear sells 14,600 ski masks at a price of $12 each.At this level of production,the depreciation is $58,000 and the variable cost per unit is $4.What is the amount of the fixed costs at this production level?
A)$58,800
B)$59,400
C)$61,300
D)$87,600
E)$145,600

Question

Quizplus · Accepted Answer

Fixed costs_{accounting break-even} = [14,600 × ($12 - $4)] - $58,000 = $58,800

At the Accounting Break-Even Point,Swiss Mountain Gear Sells 14,600 Ski