CoTres's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out. CoTres's will sell the pads for $150 a pair and they will cost $100 in variable costs to produce. If cash fixed expenses are $2,500 per year and the depreciation and amortization expenses are $900 per year, then what is the accounting operating profit break-even point for the company?
A) 86 pairs
B) 28 pairs
C) 57 pairs
D) 68 pairs

Question

Quizplus · Accepted Answer

The Answer of CoTres's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out. CoTres's will sell the pads for $150 a pair and they will cost $100 in variable costs to produce. If cash fixed expenses are $2,500 per year and the depreciation and amortization expenses are $900 per year, then what is the accounting operating profit break-even point for the company?
A) 86 pairs
B) 28 pairs
C) 57 pairs
D) 68 pairs

CoTres's Brakes Is Introducing a New Revolutionary Brake-Pad for Vehicles