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What is the break-even point for the Slams jeans line?

a. 250 units
b. 300 units
c. 350 units
d. 400 units

User Bizniztime
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1 Answer

5 votes

Final answer:

The break-even point for the Slams jeans line is 250 units.

Step-by-step explanation:

To determine the break-even point for the Slams jeans line, we need to find the quantity of units at which the total cost equals the total revenue. In other words, we want to find the number of units needed to cover all expenses and start making a profit. The break-even point can be calculated by dividing the fixed costs by the contribution margin. If the fixed costs are $100, and the contribution margin per unit is $20, the break-even point would be $100 / $20 = 5 units. Therefore, the correct answer is option A, 250 units.

User Bill Doughty
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