Answer the following questions 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

Question

Quizplus · Accepted Answer

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

Answer the Following Questions Using the Information Below