Chulo Ibsen makes and sells hand-forged wrought iron fireplace screens for $125 each.He has determined that his fixed costs are $8,000,and his variable costs per firescreen are $45.
-Refer to Fireplace Screens.What is Ibsen's break-even point in units?
A) 47
B) 100
C) 50
D) 64

Question

Quizplus · Accepted Answer

To find the break-even point, we need to use the formula: 
Break-even point (in units) = Fixed Costs ÷ (Revenue per unit - Variable Costs per unit)

Substituting the values gives: 
Break-even point = $8,000 ÷ ($125 - $45) 
Break-even point = 100

Therefore, the break-even point in units is 100, so the best choice is B.

Chulo Ibsen Makes and Sells Hand-Forged Wrought Iron Fireplace Screens