Loretta & Niece's Fixed Costs Are $425,000, Including $25,000 of Depreciation

question 20

Multiple Choice

Loretta & Niece's fixed costs are $425,000, including $25,000 of depreciation expense. The price of each unit sold is $120, and the variable cost per unit is $60. How many units must the firm sell to reach the cash break-even point?

• A) 6,667 units
• B) 7,333 units
• C) 7,083 units
• D) 3,542 units

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