DeLong Inc.has fixed operating costs of $470,000,variable costs of $2.80 per unit produced,and its products sell for $4.00 per unit.What is the company's break-even point,i.e.,at what unit sales volume would income equal costs?
A)391,667
B)411,250
C)431,813
D)453,403

Question

Quizplus · Accepted Answer

The break-even point in units can be calculated using the formula: Break-even point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Plugging in the given values: $470,000 / ($4.00 - $2.80) = $470,000 / $1.20 = 391,666.67 units. Rounding to the nearest whole unit gives 391,667 units.