Question

Chulo Ibsen makes and sells hand-forged wrought iron firescreens for $125 each. He has determined that his fixed costs are $8,000, and his average variable costs per firescreen are $45. What is his break-even point in dollars?
a. $22,550
b. $12,500
c. $10,000
d. $8,000
e. $5,875

Answer

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