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Mason Company manufactures and sells shoelaces for $2.00 per pair. Its variable cost per unit is $1.70. Mason's total fixed costs are $10,500. How many pairs must Mason Company sell to break even?a. 5,250.b. 6,176.c. 35,000.d. 52,500.e. 61,760.

Respuesta :

Answer:

35,000 units

Explanation:

Data provided in the question:

Selling price = $2.00 per pair

Variable cost per unit = $1.70

Mason's total fixed costs = $10,500

Now,

Break even in units = ( Fixed cost ) ÷ ( Contribution per unit )

Also,

Contribution per unit = Selling price per unit - Variable cost per unit

= $2.00 - $1.70

= $0.30

thus,

Break even in units = $10,500 ÷ $0.30

= 35,000 units

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