Questions
Questions
Single choice

If the Piper & Son's fixed cost for making pickled peppers is $200 000, and its variable cost per jar is $1, how many jars would the company have to sell at $3 per jar to break even?

Options
A.None of the above are correct; my calculation is correct.
B.100,000
C.66,677
D.50,000
View Explanation

View Explanation

Verified Answer
Please login to view
Step-by-Step Analysis
Let’s begin by identifying the key elements of a break-even calculation: fixed costs (FC), price per unit (P), and variable cost per unit (VC). The contribution margin per jar is P − VC, which here is 3 − 1 = 2 dollars per jar. The break-......Login to view full explanation

Log in for full answers

We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!

Similar Questions

What is it called when the total revenue equals total costs, meaning the business makes neither a profit nor a loss? It helps companies understand the minimum sales required to avoid losing money.

The __________ is the point at which a company is not making a profit or a loss.

The break even point is the point at which income and expenses intersect.

Question at position 9 Annie is a T-shirt designer and has two options when it comes to her designs. She either makes short sleeve shirts where her fixed costs are $3000 and her variable costs per unit are 15.3 or she makes long sleeve shirts where her fixed costs are $2500 and her variable costs are $32. She is overworked and exhausted from keeping track of who ordered what T-shirts and wants to research which shirt will make the most sense to produce and how many of them. At what quantity will make it indifferent if Annie produces long sleeve or short sleeve shirts? (round all answers to the nearest whole number)Annie is a T-shirt designer and has two options when it comes to her designs. She either makes short sleeve shirts where her fixed costs are $3000 and her variable costs per unit are 15.3 or she makes long sleeve shirts where her fixed costs are $2500 and her variable costs are $32. She is overworked and exhausted from keeping track of who ordered what T-shirts and wants to research which shirt will make the most sense to produce and how many of them. At what quantity will make it indifferent if Annie produces long sleeve or short sleeve shirts? (round all answers to the nearest whole number)[input]

More Practical Tools for Students Powered by AI Study Helper

Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!