Talk Time Cellular Sells Smart Phones for $150

question 66

Multiple Choice

Talk Time Cellular sells smart phones for $150.The unit variable cost per phone is $25 plus a selling commission of 10%.Fixed manufacturing costs total $5,600 per month, while fixed selling and administrative costs total $2,100.How many phones must be sold to avoid a loss on the company's income statement?

• A)62 phones
• B)51 phones
• C)70 phones
• D)45 phones

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