What Is the Break-Even Point in Units Per Year

question 50

Multiple Choice

What is the break-even point in units per year?

• A) 15,200 units.
• B) 26,600 units.
• C) 38,000 units.
• D) 40,000 units.FC = 208,000 + 324,000 = $532,000.B/E = 532,000/14 = 38,000 units.

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Definitions:

Compounded Annually

Refers to the process where the interest earned on an investment is added to the principal sum at the end of each year, then interest for the next period is calculated on the new principal.

Rate Of Return

The gain or loss of an investment over a specified period, usually expressed as a percentage of the investment's initial cost.

Invested

The act of allocating resources, usually money, into something to earn a return or achieve a financial goal.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal loan amount that has to be paid to the lender over a specific period.