quiz 14/15 based on the diagram, has petes business broken even (meaning, covered its fixed expenses and…

quiz 14/15 based on the diagram, has petes business broken even (meaning, covered its fixed expenses and become profitable)? selling price per unit: $5 number of units sold: 100 total sales: $500 total variable expenses: $250 contribution margin: $250 fixed operating expenses: $225 pre - tax profit: $25 taxes @ 15%: $3.75 net profit: $21.25 yes no not enough information available

quiz 14/15 based on the diagram, has petes business broken even (meaning, covered its fixed expenses and become profitable)? selling price per unit: $5 number of units sold: 100 total sales: $500 total variable expenses: $250 contribution margin: $250 fixed operating expenses: $225 pre - tax profit: $25 taxes @ 15%: $3.75 net profit: $21.25 yes no not enough information available

Answer

Explanation:

Step1: Recall break - even concept

Break - even occurs when pre - tax profit is at least zero, meaning contribution margin covers fixed operating expenses.

Step2: Analyze given data

Contribution margin is $250 and fixed operating expenses are $225.

Step3: Calculate pre - tax profit

Pre - tax profit = Contribution margin - Fixed operating expenses. So, $250−$225 = $25. Since pre - tax profit is positive, the business has broken even.

Answer:

Yes