FreshHarvest Inc. sells 40-pound bags of apples to grocery stores for $12 per bag. The fixed costs of the operation are $120,000, while the variable cost per pound of apples is $0.15. What is the break-even point in bags? a. 18,000 bags. b. 20,000 bags c. 22,500 bags d. 24,000 bags

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
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FreshHarvest Inc. sells 40-pound bags of
apples to grocery stores for $12 per bag.
The fixed costs of the operation are
$120,000, while the variable cost per
pound of apples is $0.15.
What is the break-even point in bags?
a. 18,000 bags.
b. 20,000 bags
c. 22,500 bags
d. 24,000 bags
Transcribed Image Text:FreshHarvest Inc. sells 40-pound bags of apples to grocery stores for $12 per bag. The fixed costs of the operation are $120,000, while the variable cost per pound of apples is $0.15. What is the break-even point in bags? a. 18,000 bags. b. 20,000 bags c. 22,500 bags d. 24,000 bags
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