HugME Company Produces Dolls

question 59

Multiple Choice

HugME Company produces dolls.Each doll sells for $20.00.Variable costs per unit are $14.00 and total fixed costs for the period are $435,000.What is the break-even point in units?

• A)21,750
• B)31,071
• C)51,176
• D)72,500

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Definitions:

Total Fixed Costs

The sum of all costs that do not change with the level of output within a certain range of activity for a specified period.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a period.

Stockholders' Equity

Stockholders' Equity is the portion of a company's assets that belongs to shareholders after all liabilities have been subtracted, also known as shareholders' equity.

Net Operating Income

Earnings from a company’s primary business activities, discounting the effects of financing and tax considerations.