Company XY Z produces and sells wireless earphones. The selling price per unit is $5 and the total f costs are $20,000. Assuming a variable cost ratio of 40%, what is the breakeven point in ($) value? figures to the nearest number) O a. None of the given answers: O b. 66,667 О с. 33,333 O d. 40,000 О е. 50,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
icon
Related questions
Question
Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total fixed
costs are $20,000. Assuming a variable cost ratio of 40%, what is the breakeven point in ($) value? (round
figures to the nearest number)
O a.
None of the given answers:
O b. 66,667
O c. 33,333
O d. 40,000
O e. 50,00O
Transcribed Image Text:Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total fixed costs are $20,000. Assuming a variable cost ratio of 40%, what is the breakeven point in ($) value? (round figures to the nearest number) O a. None of the given answers: O b. 66,667 O c. 33,333 O d. 40,000 O e. 50,00O
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Break-even Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT