Tim Marlow, the owner of The Clock Works, wanted to know how many clocks he...
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Accounting
Tim Marlow, the owner of The Clock Works, wanted to know how many clocks he must sell in order to cover his fixed cost at a given price. Marlow knew that he had total fixed costs of $20,000 for equipment, taxes, and a bank loan. He also had a unit variable cost of $20 per clock for labor and materials. If the price Marlow charges for each of his clocks is $40, what is his break-even point quantity? 1,000 clocks 100 clocks 1,100 clocks O 2,100 clocks
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