Break-Even Analysis

question 26

Multiple Choice

Break-even analysis. Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out. Max's will sell the pads for $100 a pair, and they will cost $80 in variable costs to produce. If cash fixed expenses are $1,500 per year and the depreciation and amortization expenses are $600 per year, then what is the Accounting Operating Profit Break-Even point for Max's?

• A) 8 pairs
• B) 21 pairs
• C) 75 pairs
• D) 105 pairs

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Definitions:

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