A Firm Has Fixed Operating Costs of $25,000, a Per

question 94

Multiple Choice

A firm has fixed operating costs of $25,000, a per unit sales price of $5, and a variable cost per unit of $3. What is its operating breakeven point if it targets net operating income of $10,000?

• A) 12,500 units
• B) 15,000 units
• C) 17,500 units
• D) 25,000 units