Wayne Enterprises currently sells widgets at a price of $8.00 per unit. Its variable cost is $3.00 per unit while fixed costs are $300,000. At what quantity sold will the firm breakeven? OA. 37,500 units OB. 60,000 units OC. 75,000 units OD. None of these.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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**Wayne Enterprises currently sells widgets at a price of $8.00 per unit. Its variable cost is $3.00 per unit while fixed costs are $300,000. At what quantity sold will the firm breakeven?**

- A. 37,500 units
- B. 60,000 units
- C. 75,000 units
- D. None of these.

*Note: The problem requires calculating the breakeven point by determining the quantity of units that need to be sold to cover all costs.*
Transcribed Image Text:**Wayne Enterprises currently sells widgets at a price of $8.00 per unit. Its variable cost is $3.00 per unit while fixed costs are $300,000. At what quantity sold will the firm breakeven?** - A. 37,500 units - B. 60,000 units - C. 75,000 units - D. None of these. *Note: The problem requires calculating the breakeven point by determining the quantity of units that need to be sold to cover all costs.*
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