Frances Company Produces Only One Product

question 37

Essay

Frances Company produces only one product.The selling price is $95 per unit and the variable cost is $65 per unit.Total fixed costs are $130,000.
Required:
A)Compute break-even point in units.
B)Compute break-even volume in dollars.

• A)Compute break-even point in units.
• B)Compute break-even volume in dollars.

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Definitions:

Goods and Services

The outputs produced by the economy, where goods are tangible objects and services are intangible offerings that satisfy consumer needs or wants.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced over a specific period.

GDP

Gross Domestic Product, the total monetary value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.

Per Capita GDP

The gross domestic product of a country divided by its population, giving an average economic output per person.