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Option one: Fixed costs of $10,000 and a breakeven point of 500 units. Option two: Fixed costs of $20,000 and a breakeven point of 700
Option one: Fixed costs of $10,000 and a breakeven point of 500 units. Option two: Fixed costs of $20,000 and a breakeven point of 700 units. Which option should you choose if you are expecting to produce 600 units? Option one as fixed costs is more Option one as sales is higher than breakeven Option two as it would lead to a hignier operating income Option two as sales is lower than breakeven
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