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qid 101 · business
Question: A man sells novelty items for $1.25 each. His cost is $.75 apiece plus a fixed cost of $140,000. How many items must he sell to break even? What is his sales revenue at that point?
- 180,000 units and $225,000
- 220,000 units and $275,000
- 240,000 units and $300,000
- 200,000 units and $250,000
- 350,000 units and $437,500
- 260,000 units and $325,000
- 250,000 units and $312,500
- 280,000 units and $350,000
- 300,000 units and $375,000
- 320,000 units and $400,000
Our answer: H. 280,000 units and $350,000 Source quote machine-checked (exact quote)
How it was answered
Stored formula / worked method, replayed by code
Current source
OpenStax Principles of Managerial Accounting, 3.2 Calculate a Break-Even Point in Units and Dollars
“Break-Even Point in Units = Total Fixed Costs ÷ Contribution Margin per Unit”
Source quote machine-checked (exact quote)
Earlier version (superseded)
Source weak (http_get_200_text_and_question_terms)
Earlier version (superseded)
Source weak (http_get_200_text_and_question_terms)
Earlier version (superseded)
No public source has been found for this card yet (5 places checked internally).
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