The Clock? Store's manager reported that there were 25 breakeven quantities in units and a selling...
The Clock? Store's manager reported that there were 25 breakeven quantities in units and a selling price of? $10 per unit. The manager needs to determine the breakeven revenues.
?Required: Compute the breakeven revenues.
A. ?$25.00
B. ?$250.00
C. ?$2.50
D. ?$200.00
E. $.25
Homework Answers
B. ?$250.00
Working:
| Break even revenues | = | Break even quantities in units x Selling price per unit | |||||||
| = | 25 | x | $ 10 | ||||||
| = | $ 250.00 | ||||||||
Break even is the point at which all revenues are equal to all costs or there is no profit at break even level.
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