Poole Products Inc.
Poole Products Inc. has the following product information available:
$\begin{array}{ll}
\text { Sales price } & \$ 25 \text { per unit } \
\text { Variable costs } & \$ 10 \text { per unit } \
\text { Fixed costs } & \$ 36000
\end{array}$
-What is the break-even point in sales dollars?

Question

Quizplus · Accepted Answer

The break-even point in sales dollars can be calculated using the formula: Break-even point in units = Fixed costs / (Sales price per unit - Variable cost per unit). Here, it is 36000 / (25 - 10) = 2400 units. To find the break-even point in sales dollars, multiply the break-even point in units by the sales price per unit: 2400 units * $25/unit = $60,000.

Poole Products Inc -What Is the Break-Even Point in Sales Dollars? A) $21

Poole Products Inc -What Is the Break-Even Point in Sales Dollars?
A) $21