Break-Even Analysis

question 60

Multiple Choice

Break-even analysis. Markovian Caviar Sales has discovered that the extent of the demand for its caviar harvest is 20,000 tins per year. If the fixed costs for the new product are $2,300,000 and the variable harvest cost per tin is $35, then what price can Markovian charge per tin if the company needs to break even on a pretax operating cash flow basis?

• A) $135.00
• B) $150.00
• C) $185.00
• D) None of the above

---

Definitions:

Ether

A class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups, typically used as solvents or in the synthesis of other chemicals.

Ether

A class of organic compounds that contain an oxygen atom connected to two alkyl or aryl groups, used as solvents and anesthetics.

Chemical Shift

A measure of the change in resonant frequency of a nucleus in a magnetic field due to its electronic environment, important in nuclear magnetic resonance (NMR) spectroscopy.

Carbon

A nonmetallic element that forms the basis of all known life on Earth, symbolized as C.