AMA PCM Exam - Topic 6 Question 123 Discussion

Actual exam question for AMA's PCM exam

Question #: 123
Topic #: 6

Each month, the owner of a small restaurant that sells take-out fried chicken and biscuits pays $2,500 in rent, $500 in utilities, $750 interest on a loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break even each month?

A442 buckets

B764 buckets

C1,050 buckets

D3,150 buckets

E4,200 buckets

Show Suggested Answer

Suggested Answer: C

by Benedict at Apr 03, 2026, 03:31 PM

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Pearlie

18 days ago

That’s 442 buckets, right? Sounds about right!

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Devora

23 days ago

Gotta cover $4,200 in fixed costs!

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Harrison

1 month ago

I’m pretty confident that the fixed costs are $4,200, but I’m not sure how to calculate the break-even quantity from there.

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Virgina

2 months ago

I feel like I might have mixed up the variable costs and fixed costs. Is the contribution margin just the selling price minus the variable cost?

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Donte

2 months ago

I remember a similar question where we had to find the break-even point. I think we need to use the formula: fixed costs divided by the contribution margin.

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Jamika

2 months ago

I think we need to calculate the total fixed costs first, but I'm not sure if I included all the expenses correctly.

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