Palmer's Gourmet Chocolates produces and sells assorted boxed chocolates.The unit selling price is $50,unit variable costs are $25,and total fixed costs are $2,000.How many boxes of chocolates must Palmer's Gourmet Chocolates sell to breakeven?

Question

Quizplus · Accepted Answer

D)
Sales $50
Less Variable costs 25
= Contribution Margin $25
Fixed expenses $2,000 divided by Contribution Margin $25 = 80 BE units

Palmer's Gourmet Chocolates Produces and Sells Assorted Boxed Chocolates