Screen Time is a direct marketer of popular DVD movies. Following is information about its revenue and cost structure:
| Selling Price | $13.00 per DVD |
| Variable Costs: Production (manufacturing costs) | $3.00 per DVD |
| Selling and Administration (non manufacturing costs) | $1.00 per DVD |
Fixed Costs:
| Production (manufacturing costs) | $1,000,000 per year |
| Selling and Administration (non mfg costs) | $3,000,000 per year |
In which range does the break even point fall? Answer
| A. | Between 400,001 and 450,000 units | |
| B. | Between 450,001 and 500,000 units | |
| C. | Between 350,001 and 400,000 units | |
| D. | Between 300,000 and 350,000 units |