Furr Friends Sells Kits for Making Personalized Grave Markers for Pets.The

question 168

Multiple Choice

Furr Friends sells kits for making personalized grave markers for pets.The company sells each kit for $22.The average variable cost for each kit is $13,and the total annual fixed costs for plant operation are $78,300.What is the break-even point in units?

• A)2,237
• B)3,559
• C)6,023
• D)8,700

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Definitions:

Average Sale Period

The average sale period is the average time taken to convert inventory into sales, often used to assess the efficiency of a business's inventory management.

Average Collection Period

The average time it takes for a company to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.

Year 2

Refers to the second year of a particular time frame, project, or financial period, often used in forecasting or comparing year-over-year performance.

Acid-Test Ratio

A stringent measure of liquidity that assesses a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.