A Company That Makes Cell Phones Has the Following Cost

Multiple Choice

A company that makes cell phones has the following cost structure. The have fixed costs of $145 000 per period and manufacturing costs of $15.16 per cell phone. Advertising is expected to be $25 000 per period and a special promotional contest will involve providing a free case for a cost of $5.30 per cell phone. Each cell phone sells for $49.95. What is the break-even point in the number of phones?

A) 4886
B) 4917
C) 4168
D) 5765
E) 4240