The Following Data Pertain to Last Month's Operations What Is the Break-Even Point in Dollars?
A) $18,000

The following data pertain to last month's operations:
$\begin{array}{|l|r|}\hline \text { Selling price } & \$ 20 \text { per unit } \\\hline \text { Variable production cost } & \$ 12 \text { per unit } \\\hline \text { Fixed production cost } & \$ 3,000 \\\hline \text { Variable selling \& administrative expenses } & \$ 3 \text { per unit } \\\hline \text { Fixed selling \& administrative expenses } & \$ 1,500 \\\hline\end{array}$
What is the break-even point in dollars?

A) $18,000.
B) $6,000.
C) $11,250.
D) $7,500.

Correct Answer:

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