OutCinq manufactures snow boards. The firm has fixed costs of $1,500,561. The snow boards sell for $235 each and have a variable cost of $92 each. What is the pretax operating cash flow break-even point for OutCinq? (Round to the nearest unit)

Question

Quizplus · Accepted Answer

The pretax operating cash flow break-even point is calculated by dividing the fixed costs by the difference between the selling price per unit and the variable cost per unit. This gives us the number of units that need to be sold to cover all fixed costs. Using the given numbers: Break-even point = $1,500,561 / ($235 - $92) = $1,500,561 / $143 ≈ 10,493 units.

OutCinq Manufactures Snow Boards