Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AMA PCM Exam - Topic 6 Question 123 Discussion

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?
C) 1,050 buckets
A) 442 buckets
B) 764 buckets
D) 3,150 buckets
E) 4,200 buckets

AMA PCM Exam - Topic 6 Question 123 Discussion

Actual exam question for AMA's PCM exam
Question #: 123
Topic #: 6
[All PCM Questions]

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?

Show Suggested Answer Hide Answer
Suggested Answer: C

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

Limited Time Offer

25%

Off

Get Premium PCM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Lavonne
This question is tricky! I think it's about calculating fixed and variable costs.
upvoted 0 times
...
Johana
5 days ago
No way, it’s definitely 442 buckets!
upvoted 0 times
...
Belen
10 days ago
I think it’s actually 764 buckets, though.
upvoted 0 times
...
Levi
15 days ago
Wait, are you sure it’s not more than that?
upvoted 0 times
...
Pearlie
2 months ago
That’s 442 buckets, right? Sounds about right!
upvoted 0 times
...
Devora
2 months ago
Gotta cover $4,200 in fixed costs!
upvoted 0 times
...
Harrison
3 months 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.
upvoted 0 times
...
Virgina
3 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?
upvoted 0 times
...
Donte
3 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.
upvoted 0 times
...
Jamika
3 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.
upvoted 0 times
...

Save Cancel