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Exhibit 6-1 Larimer Company Has Monthly Fixed Costs Totaling $90,000 and Variable

Question 37

Multiple Choice

Exhibit 6-1
Larimer Company has monthly fixed costs totaling $90,000 and variable costs of $5 per unit.Each unit of product is sold for $20.
-Refer to Exhibit 6-1.What is the break-even point in sales dollars?


A) $72,000
B) $90,000
C) $360,000
D) $120,000
E) None of the answer choices is correct.

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