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In the worked example, Hicks Manufacturing is said to break even at how many birdbaths?
A525 birdbaths
B225 birdbaths
C125 birdbaths
D325 birdbaths
Answer & Solution
Correct answer: B. 225 birdbaths
1. The worked example fixes a specific break-even volume.
2. CVP analysis begins with the break-even point.
3. Hicks Manufacturing is used as the running example.
4. It breaks even at 225 Blue Jay birdbaths.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 3 'Cost-Volume-Profit Analysis'_
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