Derst Inc.sells a particular textbook for $140.Variable expenses are $25 per book.At the current volume of 6,000 books sold per year the company is just breaking even.Given these data, the annual fixed expenses associated with the textbook total:

A) $400,000
B) $690,000
C) $840,000
D) $150,000

Question

Madison Dishman · Accepted Answer

Final Answer : B, Explanation :  Unit CM = Selling price per unit - Variable expenses per unit= $140 per book - $25 per book = $115 per bookUnit sales to break even = Fixed expenses ÷ Unit CM6,000 books = Fixed expenses ÷ $115 per bookFixed expenses = 6,000 books × $115 per book = $690,000

Derst Inc.sells a particular textbook for $140.Variable expenses are $25 per book.At the current volume of 6,000 books sold per year the company is just breaking even.Given these data, the annual fixed expenses associated with the textbook total:

A) $400,000
B) $690,000
C) $840,000
D) $150,000

Definitions

Learning Objectives

Learning Objectives

Related questions

Derst Inc.sells a particular textbook for $140.Variable expenses are $25 per book.At the current volume of 6,000 books sold per year the company is just breaking even.Given these data, the annual fixed expenses associated with the textbook total:A) $400,000B) $690,000C) $840,000D) $150,000

Definitions

Learning Objectives

Learning Objectives

Related questions

Derst Inc.sells a particular textbook for $140.Variable expenses are $25 per book.At the current volume of 6,000 books sold per year the company is just breaking even.Given these data, the annual fixed expenses associated with the textbook total:

A) $400,000
B) $690,000
C) $840,000
D) $150,000