Jane Westerlund owns a picture frame store and has generated a spreadsheet of several calculations based on different quantity,price,revenue,cost,and profit scenarios shown in Figure 13-9 above.What is the break-even point quantity for her picture frame store?
A)0
B)400
C)800
D)1,200
E)2,000

Question

Quizplus · Accepted Answer

The break-even point quantity is the quantity at which the total revenue equals the total cost. In this case, the total revenue is equal to the price per unit multiplied by the quantity, and the total cost is equal to the cost per unit multiplied by the quantity. The break-even point quantity is therefore the quantity at which the price per unit equals the cost per unit. In this case, the price per unit is $20 and the cost per unit is $10, so the break-even point quantity is 400 units.

Jane Westerlund Owns a Picture Frame Store and Has Generated