Figure 4-4. Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $253,750. Last year, Yerke sold 12,000 gyms and 4,000 tree houses Refer to Figure 4-4. Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units. What is the number of jungle gyms sold at breakeven? 1.750 668 2,625 1,002 875 The breakeven point is the point where total sales are greater than total cost total sales equal total cost fixed costs equals variable costs total sales are less than total cost fixed costs are less than variable costs Figure 4-4. Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the price is $200 and variable expenses are $100. Total fixed expenses are $253,750. Last year, Yerke sold 12,000 gyms and 4,000 tree houses Refer to Figure 4-4. Now suppose that Yerke expects tree house demand to increase from 4,000 to 8,000 units. What is the number of jungle gyms sold at breakeven? 1.750 668 2,625 1,002 875 The breakeven point is the point where total sales are greater than total cost total sales equal total cost fixed costs equals variable costs total sales are less than total cost fixed costs are less than variable costs