Dane Company Has a Break-Even Point of 120,000 Units

question 76

Multiple Choice

Dane Company has a break-even point of 120,000 units. If the firm's sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be:

• A) $4.
• B) $36.
• C) $44.
• D) an amount that cannot be derived based on the information presented.
• E) an amount other than $4, $36, or $44, but one that can be derived based on the information presented.