A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15.The firm's operating breakeven point in units is ________ and its breakeven point in dollars is ________.
A)250; $6,250
B)400; $10,000
C)667; $16,675
D)1,000; $25,000

Question

Quizplus · Accepted Answer

The breakeven point in units is calculated as Fixed Costs / (Sale Price per Unit - Variable Cost per Unit) = $10,000 / ($25 - $15) = 1,000 units. The breakeven point in dollars is 1,000 units * $25 = $25,000.

A Firm Has Fixed Operating Costs of $10,000, the Sale