Mathematics · Cost Accounting
IBN Co manufactures a computer games console and a range of computer games. For every games console the company sells, it also sells nine computer games. The games console sells for $200 and has a variable cost per unit of $50. Computer games sell for $60 and have a variable cost of $10. IBN Co has total fixed costs per year of $1,500,000. How many games consoles must IBN Co sell per year in order to break even?
- 110,000
- 22,500✓
- 322,500
- 425,000
Correct answer
2,500
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