A Division of a Corporation Manufactures Bicycle Pumps

Multiple Choice

A division of a corporation manufactures bicycle pumps. Each pump sells for $9, and the variable cost of producing each unit is 40% of the selling price. The monthly fixed costs incurred by the division are $50,000. What is the break-even point for the division?

A) break-even production 1,852 units; break-even revenue $83,331
B) break-even production 1,852 units; break-even revenue $166,662
C) break-even production 9,259 units; break-even revenue $83,331
D) break-even production 9,259 units; break-even revenue $166,662