Solved

What Is a Break-Even Point? the Catera Company Makes and Sells

Question 161

Essay

What is a break-even point? The Catera Company makes and sells cotton candy machines.What is the break-even volume for Catera machines in units?
 Catera Machines Finareial information  Salespersan salary $50,000 Advertising 80,000 Research and development 30,000 Production equipment 15,000 Overhead allocation 15,000 Total fixed costs $190,000 Catera’ s selling price $600 Variable cast $400\begin{array}{c}\text { Catera Machines Finareial information }\\\begin{array} { l r } \text { Salespersan salary } & \$ 50,000 \\\text { Advertising } & 80,000 \\\text { Research and development } & 30,000 \\\text { Production equipment } & 15,000 \\\text { Overhead allocation } &\underline{ 15,000 }\\\\\text { Total fixed costs } & \$ 190,000 \\\\\text { Catera' s selling price } & \$ 600 \\\text { Variable cast } & \$ 400\end{array}\end{array}

Correct Answer:

verifed

Verified

A break-even point is that level of unit...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents