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

quiz\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\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

Explanation:

Step1: Recall break - even concept

Break - even occurs when pre - tax profit is at least zero.

Step2: Check pre - tax profit value

The pre - tax profit is $25.

Answer:

Yes