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NEW QUESTION: 1
A project's break-even point is 1,235 units when the average sale price per unit is $35 and the average variable cost equals $17.5 per unit. The fixed costs of the project are closest to ________.
C. none of these answers
The break-even sales revenue equal 1,235*$35 = $43,225. The total variable costs equal $17.5*1,235
$21,612.5. The fixed costs are therefore equal to $43,225 - $21,612.5 = $21,612.5.
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