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Break-Even Analysis

Question 68

Multiple Choice

Break-even analysis. Markovian Caviar Sales has discovered that the extent of the demand for its caviar harvest is 20,000 tins per year. If the fixed costs for the new product are $2,300,000 and the variable harvest cost per tin is $35, then what price can Markovian charge per tin if the company needs to break even on a pretax operating cash flow basis?


A) $135.00
B) $150.00
C) $185.00
D) None of the above

Correct Answer:

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