Citation Manufacturing Produces Electronic Components That Sell for $600 Each

Citation Manufacturing produces electronic components that sell for $600 each. The fixed production costs are $720,000 when 30,000 or fewer components are produced, and variable production costs are $510 per component. What is Citation's operating breakeven point?

A) 8,000 components
B) 1,200 components
C) 1,412 components
D) $720,000 in sales
E) $389,189 in sales

Correct Answer:

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