Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Magpie Inc. sells a single product for $40 per unit. Variable production costs are $12 per unit. Fixed overhead costs amount $54,000 per month. Variable
Magpie Inc. sells a single product for $40 per unit. Variable production costs are $12 per unit. Fixed overhead costs amount $54,000 per month. Variable selling costs are $8 per unit. Fixed selling costs are $6,000 per month. Last month, the company produced 10,000 units and sold 8,000 units.
What is the company's break-even point in units?
a) 8,000
b) 4,000
c) 3,000
d) 3,333
NEED ASAP
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started