If the fixed cost is $80000, variable cost is $10 and the product is sold at $25 then the break-even volume will be ___________?
Correct answer: A. 5333
- A. 5333
- B. 6333
- C. 7333
- D. 4333
Explanation
Break-even volume equals fixed cost divided by contribution per unit: $80,000 ÷ ($25 − $10) = 5,333.33 units, so the listed answer is 5,333. The contribution margin is the selling price minus variable cost.
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