Break-Even Analysis: Johnstone Company Wants to Break Even at 20,000

question 1

Multiple Choice

Break-even analysis: Johnstone company wants to break even at 20,000 units on its only product. Its unit variable cost is $63.75, and its fixed cost is $742,000. What should be the company's unit selling price?

• A) $37.10
• B) $26.65
• C) $100.85
• D) $63.75

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, based on a specified confidence level.

Proportion Difference

The difference in proportions (or percentages) between two groups in a study, used to assess the effect of a treatment or intervention.

Canadians

Residents or citizens of Canada, a country in North America.

Americans

Citizens or natives of the United States of America.