Entertainment Central Makes Video Game Consoles,which It Sells for $500

question 15

Multiple Choice

Entertainment Central makes video game consoles,which it sells for $500.It estimates its variable costs to be $200 per console.It figures its fixed costs to be $600,000 per year.How many consoles does it have to sell to break even?

• A) 2,000
• B) 2,500
• C) 3,000
• D) 1,200

---

Definitions:

Accumulated Depreciation

Refers to the total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the asset's wear and tear over time.

Batting Cages

An enclosed area for baseball or softball players to practice batting, usually equipped with a pitching machine.

Trademark

A name, term, or symbol used to identify a business and its products.

Goodwill

An intangible asset that represents the premium paid above the fair market value of the net identifiable assets of an acquired company.