What Is a Break-Even Point? the Catera Company Makes and Sells

question 60

Essay

What is a break-even point? The Catera Company makes and sells cotton candy machines.What is the break-even volume for Catera machines in units?
$\begin{array}{c}\text { Catera Machines Finareial information }\\\begin{array} { l r } \text { Salespersan salary } & \$ 50,000 \\\text { Advertising } & 80,000 \\\text { Research and development } & 30,000 \\\text { Production equipment } & 15,000 \\\text { Overhead allocation } &\underline{ 15,000 }\\\\\text { Total fixed costs } & \$ 190,000 \\\\\text { Catera' s selling price } & \$ 600 \\\text { Variable cast } & \$ 400\end{array}\end{array}$

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Definitions:

Coalitions

Alliances between distinct parties, organizations, or countries for a common purpose, often temporary.

Marginal Revenue

The increased earnings derived by the sale of an extra item of a good or service.

Prices

The amount of money expected, required, or given in exchange for something.

Marginal Revenue

The supplementary income generated by a company from the sale of one more unit of a good or service.