< Back Homework#2 (Ch5 and 6)
Question 2
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A company that makes cell phones has the
following cost structure. The have fixed
costs of $145 000 per period and
manufacturing costs of $15.16 per cell
phone. Advertising is expected to be $25
000 per period and a special promotional
contest will involve providing a free case for
a cost of $5.30 per cell phone. Each cell
phone sells for $49.95. What is the break-
even point in the number of phones? Select
one:
A.
4240
B.
5765
C.
4886
D.
4168
E.
4917