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.
Homework Answers
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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