Question

Mason Company manufactures and sells shoelaces for $3.60 per pair. Its variable cost per unit is...

Mason Company manufactures and sells shoelaces for $3.60 per pair. Its variable cost per unit is $3.40. Mason's total fixed costs are $12,100. How many pairs must Mason Company sell to break even?

Multiple Choice

a. 35,590.

b. 60,500.

c. 3,559.

d. 33,611.

e. 3,361.

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Answer #1

Correct answer-------------b. 60,500.

Working

A Sale Price per unit $                    3.60
B Variable Cost per Unit $                    3.40
C=A x B Unit Contribution $                    0.20
D Total Fixed cost $          12,100.00
E=D/C Breakeven point in units              60,500.00
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