Mack Jacoby Sells Building Supplies

Multiple Choice

Mack Jacoby sells building supplies. His annual sales equal $450,000. His total fixed costs annually equal $75,000. The cost of goods sold annually is $335,000. Mack works an average of 240 days a year and 8 hours each day. Mack makes an average of five sales calls per day. Mack's break-even volume per hour is approximately:

A) $119.00
B) $153.00
C) $171.00
D) $256.00
E) $392.00