Porter's Paints produces high-end industrial paint primer and sells the primer for $45 per gallon. The company's variable cost is $21.60 per gallon of primer. Annual fixed costs related to the primer are $197,145. How many gallons of primer does the company need to sell to break even? 9,127 gallons 8,425 gallons O 2,160 gallons

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Porter's Paints produces high-end industrial paint primer and sells the primer for $45
per gallon. The company's variable cost is $21.60 per gallon of primer. Annual fixed
costs related to the primer are $197,145. How many gallons of primer does the
company need to sell to break even?
9,127 gallons
8,425 gallons
2,160 gallons
2,960 gallons
Transcribed Image Text:Porter's Paints produces high-end industrial paint primer and sells the primer for $45 per gallon. The company's variable cost is $21.60 per gallon of primer. Annual fixed costs related to the primer are $197,145. How many gallons of primer does the company need to sell to break even? 9,127 gallons 8,425 gallons 2,160 gallons 2,960 gallons
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