What Is the Breakeven Point If Total Fixed Costs Equal

question 414

Multiple Choice

What is the breakeven point if total fixed costs equal $100,000,the selling price is $15.00,and the variable costs are $8.00 per unit?

• A) 14,286
• B) 6,667
• C) 12,500
• D) 11,503

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Definitions:

Sigma Level

A measure of process capability that indicates how many standard deviations a process is from the mean before encountering a defect.

Defects

Imperfections or flaws in a product that can affect its functionality, appearance, or safety.

Productivity

The measure of efficiency with which goods and services are produced, often quantified as the ratio of output to inputs in a production process.

Six-Sigma Program

A data-driven, disciplined methodology for eliminating defects in any process, aiming to achieve near-perfect quality in products and services.