The variable materials cost is 1.69 per unit and the, Ask an Expert

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Shiny Tech, Inc. (STI) manufactures PC motherboards. The variable materials cost is $1.69 per unit, and the variable labor cost is $3.04 per unit. Suppose the firm incurs fixed costs of $750,000 during a year in which total production is 450,000 units and the selling price is $11.50 per unit. What is the cash break-even point?

A. 76,453 units

B. 88,652 units

C. 110,783 units

D. 128,907 units

E. 140,768 units

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