M Studios Retails Their Own Brand of Camera That They

question 67

Multiple Choice

M Studios retails their own brand of camera that they manufacture in their plant for $500. The plant capacity is 1,000 units per month and variable costs are $225 per camera. Total fixed costs for the year are $2.16 million. Calculate the break-even point as a percentage of capacity.

• A) 34.5%
• B) 65.5%
• C) 50%
• D) 60%
• E) 62.5%