Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000.
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units.
Narchie: ______
A) will break-even by selling 20,000 units.
B) will break-even by selling 13,333 units.
C) will break-even by selling 8,000 units.
D) will break-even by selling 1,000,000 units.
E) cannot break-even because it loses money on every unit sold.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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