Break-Even Analysis: Jackson Electronics Makes Circuit Boards and Markets Them

question 28

Multiple Choice

Break-even analysis: Jackson Electronics makes circuit boards and markets them to electronic goods manufacturers. The company has non-salary fixed costs of $212,000 and salary costs of $134,250. Each circuit board is sold at a price of $111.50 and involves variable costs of $81.73 per unit. What is the break-even point for Jackson?

• A) 3,105
• B) 11,631
• C) 4,237
• D) 3,714

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Definitions:

Social Contagion

The spread of behaviors, attitudes, or emotions through a group or society via social influence.

Nauseous

Experiencing a sensation of unease and discomfort in the stomach with an urge to vomit.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Social Influence

The effects of other people on an individual’s beliefs, attitudes, values, or behavior.