FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Wheels N Cogs is a small business that designs gear for a variety clients including those that produce lawnmower equipment. According to the financial profle, the
company spends $960k each on rent and utites One of the reasons why the company is so successful is that it can produce gear at a relatively low price
($1.72/gear) and can sell them for $9.34. Based on the information conceming this company, how many gears would Wheels N Cogs need to produce for them to
break even?
Oa 50,000 per year
Ob 125.000 per year
Oc 100,000 per year
O 75.000 per year
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