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Umbridge Purses Unlimited Sells Purses with a Sales Price of $35

Question 29

Multiple Choice

Umbridge Purses Unlimited sells purses with a sales price of $35 each. Each purse costs the company $20 to produce, and the store incurs a total of $300,000 in fixed costs each year.
What is the yearly breakeven point in units?


A) 8,572 purses
B) 10,000 purses
C) 15,000 purses
D) 20,000 purses
E) None of the above

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