What Is the Break-Even Quantity for the Following Situation

question 68

Multiple Choice

What is the break-even quantity for the following situation?
FC = $1,200 per week
VC = $2 per unit
Rev = $6 per unit

• A)100
• B)200
• C)600
• D)1,200
• E)300

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Definitions:

Profitability

A measure of the efficiency of a company in generating profits from its operations, typically evaluated through various financial ratios.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.