Respuesta :
Answer: The correct answer is Choice E.
Explanation: The formula to calculate the break even costs is:
Total fixed costs / (selling price - variable cost/unit)
Using the information for the cell phone and putting the correct numbers into the formula will give us:
10,000/(60 - 20)
10,000/40
250 units = Break-even point
Answer: The break-even point is E. 250 units.
Explanation:
Fixed costs = $10,000 (these costs do not change even if the quantity of goods or services produced does)
Variable costs = $20 (these costs do change if there is a change in quantity of goods or services produced)
Sale price = $60 (selling price of the good or service)
The break-even point is the point at which revenue covers the fixed and variable costs of a company.
To find the break-even point:
Break-even in units = Fixed costs / (sales price per unit - variable costs)
Break-even in units = $10,000 / ($60 - $20)
Break-even in units = $10,000 / $40
Break-even in units = 250
