In September, Smith Company Had the Following Financial Statement Amounts

question 60

Multiple Choice

In September, Smith Company had the following financial statement amounts related to producing 500 units: $\begin{array}{lc}\text { Direct materials } & \$ 27,000 \\\text { Depreciation expense } &11,000 \\\text { Sales revenue } & 95,000 \\\text { Direct labour } & 23,000 \\\text { Rent expense } & 25,000\end{array}$ How much is the break-even point, rounded to the nearest whole number?

• A)$18 units
• B)$50 units
• C)$122 units
• D)400 units

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Definitions:

US$

The United States Dollar, the official currency of the United States, represented as USD.

Euro

The official currency of 19 of the 27 European Union countries, which together make up the Eurozone.

Buying Power

The capacity of an individual or company to purchase goods and services, often related to the amount of money available.

CPI

A metric known as the Consumer Price Index evaluates the overall weighted pricing of a range of consumer items and services, covering areas such as healthcare, food, and transportation.