Break-Even Analysis: Sherwin Furniture Makes Period Pieces

question 2

Multiple Choice

Break-even analysis: Sherwin Furniture makes period pieces. The company has total fixed costs of $632,750. The average piece is sold at a price of $2,125 and involves variable costs of $1,675 per unit. What is the break-even point for this company?

• A) 1,406
• B) 298
• C) 167
• D) 378

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Definitions:

Unconscionability

A condition in contract law where an agreement is so unfairly one-sided that it is considered oppressive or shockingly unjust.

Expressly Conditional

Refers to a condition explicitly stated or formally specified, usually within a contract or legal agreement.

Interpret

To explain the meaning of something; to understand or explain something in a specific way, particularly in the context of languages, laws, or texts.

Agreement In Force

A legal term referring to a contract or agreement that is currently active and legally binding.