quiz\n14/15\nbased on the diagram, has petes business broken even (meaning, covered its fixed expenses and…

quiz\n14/15\nbased on the diagram, has petes business broken even (meaning, covered its fixed expenses and become profitable)?\nselling price per unit: $5\nnumber of units sold: 100\ntotal sales: $500\ntotal variable expenses: $250\ncontribution margin: $250\nfixed operating expenses: $225\npre - tax profit: $25\ntaxes @ 15%: $3.75\nnet profit: $21.25\nyes\nno\nnot enough information available

quiz\n14/15\nbased on the diagram, has petes business broken even (meaning, covered its fixed expenses and become profitable)?\nselling price per unit: $5\nnumber of units sold: 100\ntotal sales: $500\ntotal variable expenses: $250\ncontribution margin: $250\nfixed operating expenses: $225\npre - tax profit: $25\ntaxes @ 15%: $3.75\nnet profit: $21.25\nyes\nno\nnot enough information available

Answer

Answer:

Yes

Explanation:

Step1: Recall break - even concept

Break - even means pre - tax profit is at least 0 after covering fixed costs.

Step2: Check pre - tax profit value

Pre - tax profit is $125>0$. So business has broken even.