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.What are breakeven sales in dollars?

Question

Quizplus · Accepted Answer

A)
Sales $50
Less Variable costs 25
= Contribution Margin $25
Fixed expenses $2,000 divided by Contribution Margin $25 = 80 BE units
× $50 Sales Price = $4,000

Palmer's Gourmet Chocolates Produces and Sells Assorted Boxed Chocolates