Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total fixed costs are $20,000. Assuming a variable cost ratio of 70%, what is the breakeven point in ($) value? (round figures to the nearest number)

Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total fixed costs are $20,000. Assuming a variable cost ratio of 70%, what is the breakeven point in ($) value? (round figures to the nearest number)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

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Question

10*

Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total
fixed costs are $20,000. Assuming a variable cost ratio of 70%, what is the breakeven point in ($)
value? (round figures to the nearest number)
a. 66,667
O b. None of the given answers:
C. 50,000
d. 33,333
e. 40,000

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