Question

At the accounting break-even point, Swiss Mountain Gear sells 22,940 ski masks at a price of $19 each. At this level of production, the depreciation is $67,000 and the variable cost per unit is $6. What is the amount of the fixed costs at this production level?

Answer 1

Answer:

fixed cost $231220

Explanation:

given data:

quantity of skl mask = 22,940

skl mass rate = $19 each

variable cost = $6 per unit

therefore

Contribution/unit of ski mask  = 19 - 6 = $13

for 22940 ski masks, total cost =  (22940*13) =  298220

Depreciation cost  $67000

fixed cost is = 298220 - 67000 = $231220