Question:
Mix Sweet Shop bakes and sells pies. Mix has annual fixed costs of $880,000 and a variable cost per pie of $7.50. Each pie sells for $15.50 each. The firm expects to sell 500,000 pies annually.
Required:
Question: What is the break-even point in pies?
Select one:
a. 190,440
b. 110,000
c. 200,000
d. 280,000
Note: Please show how you came up with the solution.