Cool Shades Manufactures Biotech Sunglasses

Multiple Choice

Cool Shades manufactures biotech sunglasses. The variable materials cost is $1.38 per unit, and the variable labor cost is $.92 per unit. Suppose the firm incurs fixed costs of $348,000 during a year in which total production is 136,000 units and the selling price is $19.50 per unit. What is the cash break-even point?

A) 16,453 units
B) 22,435 units
C) 20,233 units
D) 18,907 units
E) 14,768 units