Mix Sweet Shop Bakes and Sells Pies

question 53

Multiple Choice

Mix Sweet Shop bakes and sells pies.Mix has annual fixed costs of $880,000 and a variable cost per pie of $7.50.Each pie sells for $15.50 each.The firm expects to sell 500,000 pies annually.What is the break-even point in sales dollars?

• A) $3,100,000
• B) $2,875,000
• C) $1,705,000
• D) $1,625,000

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Definitions:

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