Answered: Determine the break-even point in…

Determine the break-even point in dollar, assuming fixed costs are $60,000 per period, variable costs are $8.00 per unit, and the sales price is $14.00 per unit. $140,000 $66,667 $10,000 $50,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

Determine the break-even point in dollars, assuming fixed costs are $60,000 per period, variable costs are $8.00 per unit, and the sales price is $14.00 per unit.

- ○ $140,000
- ○ $66,667
- ● $10,000
- ○ $50,000

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