Chulo Ibsen makes and sells hand-forged wrought iron firescreens for $125 each. He has determined that his fixed costs are $8,000, and his average variable costs per firescreen are $45. What is his break-even point in dollars?

A. $22,550
B. $12,500
C. $10,000
D. $8,000
E. $5,875


Answer: B

Business

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