Assume that Felix, Inc. incurs the following costs:
Rent ----$115,000
Factory labor ---- $20 per unit
Executive salaries ---- $200,000
Raw materials ------ $6 per unit
Assume the company's product is sold for $150 per unit. Determine the break-even point and select which of the following statements is true.
a. Factory labor, raw materials, and salaries are variable costs incurred by the company
b. The contribution margin is $115
c. The break-even point is more than $3,000 units
d. NOne of the provided answers are true
e. The total fixed costs incurred by the company are $200,000