Excess of break-even volume


Anderson sells a single product for $65 that has a variable cost of $45. Fixed costs amount to $15 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, the bottom-line profit will be:

A. $15.

B. $20.

C. $50.

D. an amount that cannot be derived based on the information presented.

E. an amount other than those in choices "A," "B," and "C" but one that can be derived based on the information presented.

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Accounting Basics: Excess of break-even volume
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