“Briarcliff Enterprises” distributed two movies in 2022, at an average cost of $2m per movie

“Briarcliff Enterprises” distributed two movies in 2022, at an average cost of $2m per movie. the company also has a total fixed cost of $1.8m. the breakeven point for the company is

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Question:
“Briarcliff Enterprises” distributed two movies in 2022, at an average cost of $2m per movie. The company also has a total fixed cost of $1.8m. the breakeven point for the company is
A. $2M
B. $4M
C. $5.8M
D. $1.8M

Answerr:

“Briarcliff Enterprises” distributed two movies in 2022, at an average cost of $2m per movie
“Briarcliff Enterprises” distributed two movies in 2022, at an average cost of $2m per movie

To calculate the breakeven point, we need to consider both the variable costs (the cost of distributing movies) and the fixed costs.

  • Variable costs: 2 movies * $2m per movie = $4m
  • Fixed costs: $1.8m

Breakeven point is when the total revenue covers both variable and fixed costs. So, we need to add the variable costs to the fixed costs:

  • Breakeven point = Variable costs + Fixed costs
  • Breakeven point = $4m + $1.8m
  • Breakeven point = $5.8m

The correct answer is C. $5.8M.

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