Palmer's Gourmet Chocolates produces and sells assorted boxed chocolates. The unit selling price is $60, unit variable costs are $15, and total fixed costs are $3600. What are breakeven sales in dollars?

Question

Quizplus · Accepted Answer

To calculate the breakeven sales in dollars, use the formula: Breakeven Sales = Fixed Costs / (1 - (Variable Costs / Selling Price)). Plugging in the given values: $3600 / (1 - ($15 / $60)) = $4800.

Palmer's Gourmet Chocolates Produces and Sells Assorted Boxed Chocolates