canVas.w Which Of The F ase read chapters 17 and 18 and view the videos before t

Question

canVas.w Which Of The F ase read chapters 17 and 18 and view the videos before taking this quiz. you will have o attempts, a maximum of 40 minutes per attempt. I will take the highest score of your o attempts. D Question 4 1 pts The Cookie Company's fixed costs for the year are estimated at $324178. Its product sells for $289. The variable cost per unit is $158. Sales for the coming year are expected to reach $1576338. What is the break-even point in dollars? Round up to the second decimal point. Do NOT enter dollar or percent signs Previous Next Quiz saved at 4:06pm Submit Quiz

Explanation / Answer

Break even point is a number wherein sales & expenses are same or sales have reached a point where expenses can covered.

Break even point = Total fixed cost of company / (Sales pirice per unit - variable price per unit)

= 324178 / (289 - 158)

= 324178/ 131

= 2474.64

This means that the Cookie company has to produce & sell approx 2474.64 cookies to cover fixed & variable expenses. At this point of sales the company will reach Break Even Point.

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