Smith Ltd sells rugby balls for $20 each and incurs variable costs of $15 per ball. Smith Ltd''s break-even point is 40,000 units. What is Smith Ltd's profit when 50,000 units are sold?

Select one:

a. None of the options given

b. $50,000

c. $1,000,000

d. $250,000

Smith Ltd sells rugby balls for $20 each and incurs variable costs of $15 per ball. Smith Ltd's break-even point is 40,000 units. What is Smith Ltd's profit when 25,000 units are sold?

Select one:

a. $75,000 loss

b. None of the options given

c. $500,000

d. $125,000

Answer rating: 100% (QA)

QUESTION Smith Ltd sells rugby balls for 20 each and incurs variable costs of 15 per ball Smith Ltds ... View the full answer