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nordsb [41]
3 years ago
13

Etxuck279 Inc. sells a particular textbook for $34. Variable expenses are $25 per book. At the current volume of 57,000 books so

ld per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:_____
a. $2,451,000
b. $513,000
c. $1,938,000
d. $1,425,000
Business
1 answer:
kaheart [24]3 years ago
6 0

Answer:

fixed costs= $513,000

Explanation:

Giving the following information:

Selling price= $34

Unitary variable cost= $25

Break-even point in units= 57,000

<u>To calculate the fixed costs, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

57,000= fixed costs / 9

57,000*9= fixed costs

fixed costs= $513,000

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