A five-pound bag of roasted peanuts sells for $8, and the average variable cost is $4 per bag. If the total fixed cost for the roasted peanuts is $80,000, the breakeven point in bags is:
a. 20,000
b. 40,000
c. 80,000
d. 120,000
Answer: A
A five-pound bag of roasted peanuts sells for $8, and the average variable cost is $4 per bag. If the total fixed cost for the roasted peanuts is $80,000, the breakeven point in bags is:
a. 20,000
b. 40,000
c. 80,000
d. 120,000
Answer: A