Question

Progressive Products makes coolers that sell for $250 each; the fixed production costs are $30,000 when 1,000 or fewer coolers are produced; and variable production costs are $200 per cooler. To the nearest dollar, what is the Progressive's current operating breakeven point? Group of answer choices

Answer 1

The Progressive's current operating breakeven point $150,000

Given that;

Selling Price per unit

= $250

Variable Cost per unit

= $200

Fixed Costs

= $30,000

Then,

Break even point in Dollars

= Fixed cost / ( Selling price per unit - Variable cost per unit) * Selling price per unit

= {$30,000 / ( $250 - $200) }* $250

= {$30,000 / $50} * $250

= 600 * $250

= $150,000

Therefore, the Progressive's current operating breakeven point is $150,000

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