The Fixed Costs for Manufacturing Hand-Painted Wooden Decorative Plaques Are

question 14

Multiple Choice

The fixed costs for manufacturing hand-painted wooden decorative plaques are $7,000. The 5-inch oval plaques are sold at craft fairs for $2.25. Variable costs to produce 100 plaques are $100. What is the break-even point in units?

• A) 1,786 plaques
• B) 3,111 plaques
• C) 5,600 plaques
• D) 7,000 plaques

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