Mexmagnet Is Introducing a New Game System That Promises to Never

question 82

Multiple Choice

Mexmagnet is introducing a new game system that promises to never become outdated. Mexmagnet will sell the systems for $225, and it will accrue $150 in variable costs to produce. If cash fixed expenses are $30 million per year and the depreciation and amortization expenses are $7.5 million per year, then what is the accounting operating profit break-even point for Mexmagnet?

• A) 621,000 units
• B) 415,077 units
• C) 200,000 units
• D) 500,000 units

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