Hsu, Inc Sells a Single Product for $12

question 70

Multiple Choice

Hsu, Inc. sells a single product for $12. Variable costs are $8 per unit and fixed costs total $360,000 at a volume level of 60,000 units. Assuming that fixed costs do not change, Hsu's break-even point would be:

• A) 30,000 units.
• B) 45,000 units.
• C) 90,000 units.
• D) negative because the company loses $2 on every unit sold.
• E) a positive amount other than the specific amounts given.

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