If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the breakeven point in units? a. 1,200 passengers b. 2,000 passengers c. 225,000 passengers d. 3,000 passengers

If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the breakeven point in units? a. 1,200 passengers b. 2,000 passengers c. 225,000 passengers d. 3,000 passengers

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, and tickets sell for $75, what is the breakeven point in units?

a. 1,200 passengers

b. 2,000 passengers

c. 225,000 passengers

d. 3,000 passengers

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