Answer:
Answer
The breakeven point for a business is the point at which total revenue equals total costs. This means that the business is not making a profit, but it is also not incurring a loss.
To calculate the breakeven point in units, we use the formula:
Breakeven Point in Units = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
In the case of Jane Corporation, we can substitute the given values into the formula:
Breakeven Point in Units = $55,500 / ($4.95 - $3.10)
Let's calculate this:
total_fixed_costs = 55500
selling_price_per_unit = 4.95
variable_cost_per_unit = 3.10
breakeven_point_in_units = total_fixed_costs / (selling_price_per_unit - variable_cost_per_unit)
The result is approximately 30,000 fudge bars. Therefore, the correct answer is:
C) 30,000 fudge bars
This means that Jane Corporation needs to sell 30,000 fudge bars to cover its total costs and reach the breakeven point.
