Sacramento Sandals (SS) Has Fixed Annual Operating Costs of $75,000

question 173

Multiple Choice

Sacramento Sandals (SS) has fixed annual operating costs of $75,000. SS retails each pair of sandals for $14.99 each and the variable cost per pair is $4.99. Based on this information, the breakeven sales level in units is

• A) 7,500
• B) 15,030
• C) 5,003
• D) 6,250

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Definitions:

Tablespoons

A unit of volume measurement, typically used in cooking, equivalent to three teaspoons or about 15 milliliters.

Teaspoon

A unit of measure used in cooking, equivalent to about 5 milliliters, or a small spoon used for stirring and sipping.

Medication

Substances used to treat, prevent, or diagnose illnesses, ranging from over-the-counter drugs to prescription pharmaceuticals.