Answer the following question(s)using the information below.Stephanie's Bridal Shoppe sells wedding dresses.The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000.
-How many dresses are sold when operating income is zero?
A)225 dresses
B)150 dresses
C)100 dresses
D)90 dresses
E)60 dresses

Question

Quizplus · Accepted Answer

To find the break-even point where operating income is zero, use the formula: Fixed Costs / (Selling Price per Dress - Variable Cost per Dress). Here, it's $90,000 / ($1,000 - $400) = 150 dresses.

Answer the Following Question(s)using the Information Below