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

question 6

Multiple Choice

Break-even analysis: Jackson Electronics makes circuit boards and markets them to electronic goods manufacturers. The firm has nonsalary 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

---

Definitions:

Bailment

The legal relationship where physical possession of personal property is transferred from one person (the bailor) to another (the bailee) who subsequently has possession of the property under a contract.

Automobile

A vehicle on wheels designed for transport, commonly propelled by an internal combustion engine or an electric motor.

Proprietor

An individual who owns and runs a business, possessing exclusive legal rights and responsibilities regarding its operations.

Absolute Liability

A legal principle where a party is held responsible for damages or loss, irrespective of intent or negligence.