Larsen Films' Is Analyzing Its Cost Structure

question 12

Multiple Choice

Larsen Films' is analyzing its cost structure.Its fixed operating costs are $470, 000, its variable costs of $2.80 per unit produced, and its products sell for $4.00 per unit.What is the company's breakeven point, i.e., at what unit sales volume would income equal costs?

• A) 391, 667
• B) 411, 250
• C) 431, 813
• D) 453, 403
• E) 476, 073