Question

Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs o
$ 3 4 2. 6 1 5 Units
Refer the graph which shows the components of break-even. Required Match the numbers shown in the graph with the following it
0 0
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Answer #1

a. and b. are correct.

c.

Sales volume:

= ($800,000 + $160,000) / ($40 - $25)

= 64,000 units

Items Numbers
a. Fixed cost line 5
b. Total cost line 4
c. Breakeven point 6
d. Area of profit 2
e. Revenue line 3
f. Area of loss 1
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