For a Particular Product, Sandbarr Corporation Has Operating Fixed Costs

question 47

Multiple Choice

For a particular product, Sandbarr Corporation has operating fixed costs of R30,000, of which depreciation of R15,000 is the only non-cash outlay.The unit sale price is R4.20 per unit and variable costs are R2.20 per unit.What is the operating cash breakeven point in units for Sandbarr?

• A) 3,572 units
• B) 6,818 units
• C) 10,000 units
• D) 15,000 units
• E) 7,500 units

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