Problem:
At the accounting break-even point, Swiss Mountain Gear sells 14,600 ski masks at a price of $12 each. At this level of production, the depreciation is $58,000 and the variable cost per unit is $4.
Required:
Question 1: What is the amount of the fixed costs at this production level?
- $58,800
- $59,400
- $61,300
- $87,600
- $145,600
Note: Show supporting computations in good form.