3
QuizMultiple Choice

Break-Even Analysis

Question 3 • FowU - Financial Math - B

Kevin works for a company which produces printers. A printer sells for $163.95 and costs $48.28 to produce. In one month, Kevin’s company sold 427 printers, earning a profit of 22,599.09. How great were the company’s non-production overhead expenses, to the nearest dollar?

Answer
A
$13,410
B
$20,616
C
$24,809
D
$26,792

Explanation

The profit before overhead is the selling price minus the production cost for each printer: $163.95 − $48.28 = $115.67. For 427 printers, that is $115.67 × 427 = $49,391.09. Subtract the actual profit of $22,599.09 to find non-production overhead: $49,391.09 − $22,599.09 = $26,792. The answer is $26,792, choice D.

AI-written and checked against the verified answer.

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